Investment, Summers-DeLong, and the Old Paradigm

michael at michael at
Thu Jun 11 10:40:09 PDT 1998

The Summers-Delong paper does argue that investment is key to growth, although growth may spur investment in a reverse causality. Their data is historical. Today's investment,as Doug says, is very different.

This difference gives rise to the New Paradigm, of which we have expressed considerable scepticism.

We are in uncharted territory, in part, because of the shift of our manaufacturing base abroad, as part of globization, of which much scepticism has been expressed.

We are in unchartered waters. We are correct to be sceptical about the New Paradigm and globalization, yet something important is afoot. Much work to do -- at least in theory.

-- Michael Perelman Economics Department California State University Chico, CA 95929

Tel. 530-898-5321 E-Mail michael at

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