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Stuart_Armstrong comments on A Keynesian key insight - Less Wrong Discussion

6 Post author: Stuart_Armstrong 19 June 2013 02:05PM

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Comment author: Stuart_Armstrong 19 June 2013 05:16:17PM 1 point [-]

No, it's simply that unemployment cannot persist in rational microeconomic models.

Comment author: ESRogs 19 June 2013 08:37:56PM 1 point [-]

Ah, that makes sense (and seems obviously to have been your meaning in retrospect). Thanks!

Comment author: wedrifid 27 June 2013 07:56:23AM 0 points [-]

No, it's simply that unemployment cannot persist in rational microeconomic models.

Such models must include the assumption such as "all potential workers are able to provide a net positive value to an employer".