non-ergodicity and policy

["Colin Danby" <danbyc@xxxxxxx>]

> I'm also a little curious about the degree to which non-ergodicity applies.
> If there is _nothing_ that can be ergodically determined, then even
> Keynesian policy prescriptions would be ruled out, since they imply (as does
> any theory) applicability across space and time. In other words, I don't see
> why insisting on this high-threshold of ergodicity doesn't in fact lead you
> to suggest that since nothing can be known about the future, nothing can be
> done.

You might want to consult the archives as this one has been pretty thoroughly hashed over e.g. 

 

http://csf.colorado.edu/forums/pkt/2000/msg02077.html

 

The gist of the answer is that PK policy is not just a question of fine-tuning parameters in an existing system, but of institutional, structural changes to alter the properties of a system.  Consider Minsky's policy argument in _Stabilizing an Unstable Economy_, which is entirely consistent with his non-ergodic ontology.  Or consider the proposals for empoyment-guarantee programs.

 

Best, Colin