Post
Topic
Board Economics
Re: Is deflation truly that bad for an economy?
by
dinofelis
on 11/04/2015, 04:06:30 UTC
the existence of a nash equilibrium is not a guarrantie that it is reachable. IE the earth never reaches the sun.

That's not what I'm saying.  I'm saying that if you do NOT have a Nash equilibrium, you will NOT stay there.  Any utopic system that is not a Nash equilibrium, will not remain utopic.

Quote
No central planning is not a game, it is an algorithm that determines the parameters in the economy, its gain is to find the optimum solution.

Central planning implies central planners.  Central planners play the game of optimising things for themselves.

If you were a central planner, and you have the choice between setting the algorithm such that everybody, you included, has 2 loaves of bread and a bottle of milk, or setting the algorithm so that most people have 1 loaf of bread and a bottle of water, and you and your kin have caviar and vodka, what algorithm are you going to implement as a central planner, you think ?
What is then, according to you, the "optimum solution" ? Wink