Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ilaine who wrote (9951)	9/20/2001 11:08:52 PM
From: Moominoid	Read Replies (1) of 74559

As you say you haven't done anything different but others are. You are experiencing a drop in demand that then feeds on into how much you spend, pay to employees, invest etc. No problem there. Macroeconomics is meant to be about those aggregate phenomena. They're working on it and think they are getting better in including more complex dynamics. In the simple Keynesian models that's just the multiplier effect of a change somewhere else in the economy. On the road maybe one day there is a traffic jam because one person was late waking up and that triggered a traffic jam today. That's chaos theory - small shock propagating out into a much bigger impact. The same could happen in the macroeconomy too. I think economists are aware of that. Modeling it properly with data we can observe is the hard part. Overall though the economy is incredibly stable - like there is chaotic weather within an overall much more stable (slowly changing) climate. David

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next