[OPE] Jim Devine's model of the recent economic collapse.

From: Gerald Levy <jerry_levy@verizon.net>
Date: Tue Oct 13 2009 - 17:49:07 EDT

Sent by former OPE-L member Jim Devine to the urpe-announcements list.
In solidarity, Jerry

----- Original Message -----
From: "Devine, James G." <JDevine@lmu.edu>
Sent: Tuesday, October 13, 2009 3:45 PM
Subject: a model of the recent economic collapse.

> URPEople may be interested in an article I just finished, which presents a
> simple economic model with some insights into the 2008-9 crisis. It's
> based on a 1940 model by Nicholas Kaldor and describes a steep recession
> ("falling off a cliff," in Warren Buffett's phrase) as a jump between
> equilibria. Following Hyman Minsky and Michal Kalecki, I suggest that
> under capitalism, such a fall off the cliff is more likely to the extent
> that we see sustained prosperity (as with the so-called "Great Moderation"
> of 1985-2006). Once the economy falls off the cliff, it's very difficult
> to climb back up the cliff without government stimulus. A PDF version of
> the article can be found at:
> http://myweb.lmu.edu/jdevine/JD-2009-neoKaldorianModel.pdf.
> Any and all comments are welcome.
> cheers,
> Jim Devine, a.k.a. James G. Devine | Professor of Economics
> Loyola Marymount University | Los Angeles, CA 90045
> jdevine at lmu.edu | 310 338-2948

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Received on Tue Oct 13 17:53:20 2009

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