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From: mms1646@acf4.UUCP (Michael M. Sykora)
Newsgroups: net.politics.theory
Subject: Re: Business Cycles -- Note to Gadfly:Re to DKmcK
Message-ID: <2380015@acf4.UUCP>
Date: Sun, 12-May-85 00:59:00 EDT
Article-I.D.: acf4.2380015
Posted: Sun May 12 00:59:00 1985
Date-Received: Tue, 14-May-85 08:13:45 EDT
References: <632@whuxl.UUCP>
Organization: New York University
Lines: 32


>/* orb@whuxl.UUCP (SEVENER) / 10:46 am  May 10, 1985 */

>Come now, Dan, surely you jest.  Cycles are a phenomenon of *any* 
>dynamic system, be it economic, ecological or biological.

Why?  Provide evidence that dynamism implies cyclicity.

>In order for there to be *no* economic cycles whatsoever the
>system would have to be *constantly* at the exact equilibrium point.

Since this conclusion is not obvious, how about eleborating the
reasoning that you claim leads to this conclusion.

>Indeed the whole point of neoclassical economic theory (and Marx'
>statements about the dynamism of Capitalism) is that supply and
>demand are dynamic and constantly shifting- such things as
>price controls restrict such dynamic changes in price and supply.
>As conditions shift the equilibrium point also shifts-but responding
>to these shifts involves lag effects and other factors.

This seems to imply oscillation, but not necessarily cyclicity.
How do you deduce cyclicity from this?
 
>As I have pointed out earlier, it is possible theoretically for
>the market system to become more and more erratic under the
>conditions of the cobweb effect.

What is the "cobweb" effect?
 

					Mike Sykora