tag:blogger.com,1999:blog-6579276438498793256.post6369099751285566258..comments2023-05-05T08:45:59.693-04:00Comments on Bastiat's Corner: In the Long Run We're All Ill-definedDanielhttp://www.blogger.com/profile/02934119207879672793noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6579276438498793256.post-1197618094726711992013-01-07T18:48:43.779-05:002013-01-07T18:48:43.779-05:00I think that is very valuable input to the discuss...I think that is very valuable input to the discussion. This is exactly my point, we seem to have relatively poor models for relatively short periods of time and a surplus of busy-bodies who think they can achieve greatness by tinkering with the recipe. Thank you for contributing. Danielhttps://www.blogger.com/profile/02934119207879672793noreply@blogger.comtag:blogger.com,1999:blog-6579276438498793256.post-39873334565977020592013-01-07T16:54:02.509-05:002013-01-07T16:54:02.509-05:00I think the long-run/short-run dichotomy needs to ...I think the long-run/short-run dichotomy needs to be placed within the context of long-run neutrality. Basic macro theory holds that in the long-run an economy will operate at full employment, whatever the precise allocation of resources is. Short-run models, therefore, study short-run changes in the economy, whether these are demand-side or supply-side changes. Predictions, whether policy or theoretical, I'd guess are mostly restricted to short-run analysis.Jonathan M.F. Catalánhttp://www.economicthought.net/blognoreply@blogger.com