q**i
发帖数: 174 | 1 One question I have been thinking about is this: is it
possible, in today's world, for a small economy
to be stable?
What happened in Hong Kong is indicative of how powerful
free flow capital can be. With abundance of speculative
flows of money, it will be very difficult to stablize
any economy, short of removing itself from the global
chain.
For an economy that's small, and perfectly in sync with
its fundamentals, and allows a free market and perfectly
convertible currency, speculators could in | J**Y
发帖数: 34 | 2
This is a complicate question. In order to answer this question, you have to
prove whether a economy system like this has an equilibrium point and
whether this point is stable. Using fixed point theorem, we can prove
that there exist equilibrium point for a free market economy. In today's
world, there are two many disturbutions ( the speculator's behavior)
for a small free economy. If
this equilibrium point is not stable, the economy system would deviate
from this point under these disturbution
【在 q**i 的大作中提到】
: One question I have been thinking about is this: is it
: possible, in today's world, for a small economy
: to be stable?
: What happened in Hong Kong is indicative of how powerful
: free flow capital can be. With abundance of speculative
: flows of money, it will be very difficult to stablize
: any economy, short of removing itself from the global
: chain.
: For an economy that's small, and perfectly in sync with
: its fundamentals, and allows a free market and perfectly
| q**i
发帖数: 174 | 3
boundary conditions
equilibria should be stable by definition (at least neo-stable,
if not strongly stable).
I was attempting to point out that if a small economy (at its
equilibrium point) is attacked, can it survive on its own?
【在 J**Y 的大作中提到】
:
: This is a complicate question. In order to answer this question, you have to
: prove whether a economy system like this has an equilibrium point and
: whether this point is stable. Using fixed point theorem, we can prove
: that there exist equilibrium point for a free market economy. In today's
: world, there are two many disturbutions ( the speculator's behavior)
: for a small free economy. If
: this equilibrium point is not stable, the economy system would deviate
: from this point under these disturbution
| a******r
发帖数: 4 | 4
Well, do you refer to the financial side of the economy, like what happended
in Asia? It is a good question. About the equilibrium in the asset market,
as Jiay said in his aricle, we can prove that under some assumptions, there
exits an equilibrium poit(the Radner equilibrium). The difference is that
we will extend good space from the common physical goods to the contingent
commodity space, if the asset market is complete, there will be an equilibrium
point. This is the asset market equilibriu
【在 q**i 的大作中提到】
:
: boundary conditions
: equilibria should be stable by definition (at least neo-stable,
: if not strongly stable).
: I was attempting to point out that if a small economy (at its
: equilibrium point) is attacked, can it survive on its own?
| q**i
发帖数: 174 | 5
Just curious, what is a Radner equilibrium?
【在 a******r 的大作中提到】
:
: Well, do you refer to the financial side of the economy, like what happended
: in Asia? It is a good question. About the equilibrium in the asset market,
: as Jiay said in his aricle, we can prove that under some assumptions, there
: exits an equilibrium poit(the Radner equilibrium). The difference is that
: we will extend good space from the common physical goods to the contingent
: commodity space, if the asset market is complete, there will be an equilibrium
: point. This is the asset market equilibriu
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