Wednesday, August 21, 2013

Arnold, say it isn't so

The coordination problem also can be given a classical reading, as I do with PSST. However, I totally reject the notion of a “steady-state equilibrium.” The economy is constantly creating new opportunities and destroying old business models. It is in the midst of these dynamic changes that workers become unemployed. Arnold Kling

Wow, how does one determine a sustainable pattern without an equilibrium baseline? How does one maintain How do we make shipments if the trading patterns constantly change? Without an end point, the point at which the entrepreneur executes his plan, without that conclusion, the entrepreneur wanders the waste land. So there must be a monotonic march toward the end point, and that march must connect to a starting point. A connection is made, it is fixed, until the next Recalculation (a better metaphor).

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