[OPE] Jim Devine's model of the recent economic collapse.

From: Jurriaan Bendien <adsl675281@telfort.nl>
Date: Wed Oct 14 2009 - 09:07:48 EDT

It's an interesting and useful paper as a summary mathematical description,
but from my perspective I would say that the whole paper could be rewritten
without any reference to "equilibrium" at all, simply by referring to the
transition from one economic configuration to another configuration. Since
there is never any balance between supply and demand, the best we can say is
that at a certain point the imbalances became sufficiently large to be
unsustainable, meaning the economy as a whole cannot adjust to them without
a drop in employment, investment and output. To sustain the monetary and
price regime then involves half the growth rate and double the unemployment
rate, assuming no significant change in social behaviour.

Jurriaan

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Received on Wed Oct 14 09:10:28 2009

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