Showing posts with label Greshams law. Show all posts
Showing posts with label Greshams law. Show all posts

Wednesday, September 27, 2006

What do Greshams law, Akerlof's lemons and Easterly's heterogeneous people have in common?
The expectations (demand) of consumers of currency, Yugos, and human capital, respectively effect not only the short term specific markets; but more importantly the long term equilibrium for the goods in question. Eventually, the expectations will determine the future viability of the good.