Re: investment and unemployment

[Paul Davidson <pdavidson@xxxxxxx>]

At 11:47 AM 04/07/2000 -0400, Warren wrote:


> >
>
> >
>
> Comparative advantage also assumes full employment as a precondition.
> Perhaps that is the most 'misunderstood' points among economists?



Absolutely correct. Comparative advantage for the open economy is the
equivalent of Says Law for the closed economy.  It just is the wrong
principle  unless there is global full employment as i
 have noted in a number of places including THE ECONOMIST.

Paul
Paul Davidson
Holly Chair of Excellence in Political Economy
Editor, JOURNAL OF POST KEYNESIAN ECONOMICS [JPKE]
Economics Department -- 523 SMC
University of Tennessee
Knoxville, Tennessee 37996-0550
email: Pdavidson@xxxxxxx;   phone: (865)974-4221;    fax: (865) 974-4601
http://econ.bus.utk.edu/Davidson.html