Maximization,replication, and the economic rationality of positive economic science |
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| Authors: | James R Wible |
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| Institution: | University of Massachusetts—Amherst , UKThe author thanks Esra Erdem for excellent research assistance, the Department of Economics at the University of Massachusetts—Amherst for financial support, and the editors for helpful comments. The author especially thanks Herbert Gintis. who shared in the development of a number of the ideas presented here. |
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| Abstract: | This paper argues that gross, short-term capital mobility is excessive, but that long-term net capital mobility remains low. This combination of extremely high gross, but low net capital mobility can create great difficulties in achieving full employment. However, these difficulties fundamentally depend on the political structure and the choices made in individual nations; they do not result from technological advances, such as innovations in computers and communication. Faced with short-term capital mobility, groups and classes within nations have made political choices that hinder the ability of the nation to reach full employment. But other choices can be made.Nations can adopt political structures and rules of the game that reduce the constraints to achieving full employment. |
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