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Why assume stability as either Desired or Achievable?
by ATinNM on Thu Jan 24th, 2008 at 12:23:13 PM EST
[ Parent ]
Stability is desired because without stability, people require growth to provide a margin of security in the face of the volatility. If the goal is an economic system that accommodates growth without being addicted to it, confidence that the system has a stable safety net below which it will not fall is critical.

As far as achievable, that is not an assumption, it is a conclusion of the Job Guarantee plus Balanced Trade analysis.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Thu Jan 24th, 2008 at 04:20:32 PM EST
[ Parent ]
Stability is good because of risk aversion. If the future is perceived as unstable things get more expensive.

And risk aversion is not just a personality trait: in the absence of a social safety net the downside risk can be quite scary.

We have met the enemy, and he is us — Pogo

by Migeru (migeru at eurotrib dot com) on Fri Feb 1st, 2008 at 05:11:10 AM EST
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