ext_3181 ([identity profile] tcpip.livejournal.com) wrote in [personal profile] tcpip 2005-10-18 05:39 am (UTC)

Re: Productivity


Well, the IR reforms certainly could cause an improvement in productivity by a range of mechanisms including release of resources barred by complexity costs.

Releasing resources doesn't axiomatically mean that the resources are reinvested into productive activity. Heck, there's no certainty of capital investment even if we were all working for a bowl of rice a day. There's that great Keynesian discovery of "the liquidity preference"

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