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Re: 'Stability' Of Equilibrium w/Zero-Cost Money - Addendum



The problem has already been raised by Einstein and one of the founder of Quantum theory: Einstein said that "G... doesn't play dice" meaning that what appeared to us to be a random phenomenon was in fat deterministic we just missed a Parameter. My view is that Economics forgets to take into account the Standard Deviation of revenue. All the theorem in Economy are true at a given Standard deviation of revenue. But it does increase and this faster with time because of the increase of efficiency of the economy. It is at the root of the deflation and of the inflation of the Asset Price Bubble. This increase of the standard deviation of revenue is multiplied by the existence of Credit which leverages the position of the rich.
 
 
----- Original Message -----
Cc: gang8
Sent: Wednesday, September 20, 2000 8:02 PM
Subject: 'Stability' Of Equilibrium w/Zero-Cost Money - Addendum

A brief point of clarification.
 
 
In response to my conclusion:
 
    In other words, mainstream 'bourgeois economics' is pseudo-science!
 
My correspondent observed:
 
    Now that’s a conclusion I’ll have to give more thought.
 
And I commented:

    Science:

        The apple will fall along such and such path to the ground.

    Pseudo-science:

    The apple may or may not fall along such and such path to the ground.
 
Gunnar


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