Uncertainty, not money

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"When dealers have to guess the future course of prices, a fall today often leads to selling causing a further fall, and contrariwise. Producers take time to adjust supplies; an increase in demand leading to a high price is followed by an excessive increase in output that cracks the market. Uncertainty, not money, is the cause of the trouble." -- Joan Robinson, Economic Heresies,p. 65

Comments

  1. Bob Murphy1:40 PM

    So she's a racist too, then?

    ReplyDelete
  2. Bob Murphy2:10 PM

    Sorry, way too vague... I'm referring to the fact that Krugman thinks it's a crazy Tea Party anti-Obama slur to blame the recession on uncertainty, rather than lack of spending.

    ReplyDelete

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