Re: The Aggregate Supply Function (fwd)

["Alan G. Isaac" <aisaac@xxxxxxxxxxxx>]

On Tue, 4 Sep 2001, Paul Davidson wrote:
> The data may help us understand the past. Fine.

And our understanding of the past always provides the basis for our
actions, which are oriented toward the future.  We must constantly
act, act in acting we predict the future. Badly sometimes, of course.
(``Pre-dict'' = say in advance. Nothing more.)  Econometrics is just
one tool we use.

> But if times are "normal" why do we need to do anything?

Do you look both ways before you cross the street?  Why?
It is a normal activity dealing with non-ergodic processes.

If I take your question seriously, it seems to suggest (e.g.)
that businesses should not be interested in doing market research,
that the Fed should not care about regulating banks except during
emergencies, etc.  We always want as much (cost effective) help
as we can get dealing with any times, normal or otherwise.
(That, I presume, was the justification for your own econometric
papers.)

Alan