https://docs.google.com/file/d/0B1Avn8i4tc6JLWRvWWVVVW43YUE/edit?usp=sharing
I discuss the simplistic idea that if we just kep all prices and production the same at the onset of the recession we could have avoided all of this.
Don't know about anyone else, but I can't access the file.
I can access it.
I can see the file, and it seems just fine.
My humble blog
It's easy to refute an argument if you first misrepresent it. William Keizer
Well... Screw you guys.
I could see it when I logged into gmail.
My opinion is that you danced around the core price in an economy which is the interest rate. This one price is the primary piece of information that both consumers and entrepreneurs require to perform Economic Calculation and is also universally fixed by central banks through govenrment violence. And as you mentioned in the paper, fixing any price leads to production uncoordinated by consumers which produces waste, stagnation and eventually poverty.
Also I did like the example of WW2 where you pointed out correctly that the centrally planned economy was not providing for consumers but going towards death and destruction on a scale never before seen by humanity. You did not point out that it was not until well after WW2 that the economy fully recovered from the Depression and depressing WW2. My view is that the economy did not fully recover until November of 1953 when the Dow Jones FINALLY reached its 1929 level.
I am not as well-read on interest rates and ABCT as I would like to be, so I didn't want to say anything wrong.
Bump
Decent points.
I tend to try to get people to focus on "production patterns" (supply) and "consumption patterns" (demand) instead of static quantities. This to wipe away thinking about aggregates.