[OPE-L] Non equilibrium: Rakesh & Jerry

From: Alejandro Agafonow (alejandro_agafonow@YAHOO.ES)
Date: Sat Apr 21 2007 - 12:49:16 EDT

Dear Rakesh and Jerry:
Rakesh said: One wonders though whether the political manipulation of interest rates or even the money supply is enough to achieve the "social optimum".
And Jerry recently said (19/04/2007): […] individual decisions in the market.  The latter process raise some thorny issues concerning the possibility of increasing inequality, wasted resources, and social stratification.
If we decide to rest upon market the allocation of resources we have to realize that even in absence of private property the social optimum –understood as a condition where the quantity of needs freely expressed have been equitably satisfied with the lesser expenses of resources– couldn’t be reached. Because of this we have to rest the allocation of some resources upon non-market devises and redistribute rent through taxes. What king of resources: primary goods. What kind of devises: planning according to monetary account.
Using this kind mixed allocation devises Scandinavian countries have reached, in the unfavourable context of capitalism, a personal rent distribution measured by Gini index that oscillates between 0.2 and 0.3. We have good reasons to think that it can be reduced surpassing capitalism.
I realized that I didn’t attach Roemer’s paper. Here it goes.
Best regards,
Alejandro Agafonow

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