--- Bob Steinke <[EMAIL PROTECTED]> wrote: > ... but that's different than economics where experts > can't even agree what will happen if you do simple things like change > interest rates.
Would economists not agree that holding everything else constant, if market interests rates are lowered by increasing bank reserves, there will be more funds lent? It's an application of the law of demand. It is possible for there to be totally inelastic demands, so we qualify it as "if the demand is not totally inelastic" by implication if not explicitly. Of course the effects on the economy depends on many other variables, many of which are only partly known, so of course there will be various guesses, but forecasting is not economic science, rather it is the "art of economics". On bedrock economic science - the law of demand, the concept of opportunity cost, the benefits of employing comparative advantage - there is as much agreement as there is among physicists that F=MA. Fred Foldvary ===== [EMAIL PROTECTED]
