Elliott waves and Cambridge

[Bradford DeLong]

>Bradford DeLong wrote:
>
>>Will you allow me to say that lowering the interest rate is likely 
>>to raise the number and aggregate total cost of investment projects 
>>with positive risk-adjusted net present value?
>
>In theory, but why then do changes in interest rates do so little to 
>explain aggregate investment?
>
>Doug

Because other things--business cash flow, expectations of future 
demand, animal spirits--are much more important? (Save in 
construction, where interest rates do matter.)

Brad DeLong