Re: Edward Prescott, Idiot

From: Robert Vienneau (rvien_at_see.sig.com)
Date: 10/30/04 

Date: Sat, 30 Oct 2004 05:35:57 -0400

In article <RaHgd.33367$186.28437@fe1.texas.rr.com>, Igor
<jjweatherby@houston.rr.com> wrote:

> What are you arguing. It is simple take two equations.
>
> 1. GDP(t+1) = (1+x)GDP(t)
> 2. Debt(t+1) = (1+i) debt(t)

i represents the rate of interest. The second formula is wrong.
For example, it is inapplicable to the U.S. Federal debt right now. 

-- 
Mostly economics:  <http://www.dreamscape.com/rvien/#PublicationsForFun>
r           c
 v         s a           Whether strength of body or of mind, or wisdom, or
  i       m   p          virtue, are found in proportion to the power or wealth
   e     a     e         of a man is a question fit perhaps to be discussed by
    n   e       .        slaves in the hearing of their masters, but highly
     @ r         c m     unbecoming to reasonable and free men in search of
      d           o      the truth.    -- Rousseau