Two economists (one a Chicago School devotee of Uncle Miltie and one A Rational Expectationist) were walking down the road and came across a pile of shit. The Chicago School devotee of Miltie offered the Rational Expectationist $20,000 to eat the shit. After a quick optimization calculation, the Rational Expectationist ate it. Later, down the road they came across another pile of excrement and the Rational Expectationist in turn offered the Friedmanite $20,000 to eat it and after a quick optimization calculation he ate it. As they were walking down the road the rational expectationist said to the Friedmanite: "You know, we just screwed up; we are actually worse off because we each have $20,000 with no net change from our original cash position plus we have both eaten shit. The Friedmanite looked mockingly at the Rational Expectationist and said: "it is obvious that you never studied economics at a school of the stature of Chicago. You have completely ignored the fact that we have just generated $40,000 worth of trade." Jim Craven *------------------------------------------------------------------* * James Craven * "The envelope is only defined--and * * Dept of Economics * expanded--by the test pilot who dares* * Clark College * to push it." * * 1800 E. McLoughlin Blvd. * (H.H. Craven Jr.(a gifted pilot) * * Vancouver, Wa. 98663 * * * (360) 992-2283 * "For those who have fought for it, * * [EMAIL PROTECTED] * freedom has a taste the protected * * * will never know." (Otto Von Bismark) * * * * * MY EMPLOYER HAS NO ASSOCIATION WITH MY PRIVATE/PROTECTED OPINION *