If hand-waving were an Olympic sport, economists could be dominant.

On Thu, Jun 7, 2012 at 5:56 PM, Jim Devine <[email protected]> wrote:
> yeah, I know. But there have been some efforts. For example, Baumol
> once said that "normal" profits were set by the interest rate, since
> the alternative to being engaged in real production was to buy bonds.
> The problem, of course, is that there's no NC reason -- except
> hand-waving -- for the real interest rate to be positive.
>

-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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