Tuesday, September 28, 2010

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competitiveness

It is not this is a concept of economic theory, but a political buzzword, if not a rubber term.

Who wins in a competition the upper hand, the nature of the case term referred to or other things, to see always relative. Because this depends not only on the strength of one, but always also on the weakness of others.

It comes with an international unrestrained free trade always important that the person who buys the debt against the other. A country like Germany will become a permanent trade surplus, is this dependent on others to be constantly ready to import more than it exports. In the long run, this may not go well - but only if someday the one who achieved the surplus that is willing to finance the demand for it themselves or to allow the debtor pay back its debts.

This implies that one of the short-term perspective of the "active trade balance" and the modern tradition in Germany, "neo-mercantilism 'was adopted.

as little as you can force the unemployed, retired or disabled to do so by law, accept a job that does not exist at the labor market, little can be economies compel the repayment of debts if given the same opportunities for growth by externally imposed Austeritätskurs cut. With such political myopia punish countries that pursue the so-called "austerity plan", not just the "debt sinners" sondern sich letzten Ende selber. Ansgar Belke

: Wettbewerbsfähigkeit - Eine Obsession Europas? DIW 22. September 2010.


CSL What interest to be competitive if we are regressing socially? Elements for invalidation of the decline thesis "competitive" Luxembourg companies and comment on public finances.

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abuse is a buzzword. However, it probably is
used less frequently in the context of what I saw today met in John's Gospel:

That was the torch that burns and seems ye were willing for a short time to rejoice in its light (Jn 5:35).

meant by 'that' is John the Baptist. It was the forerunner, the last prophet, Jesus Christ, the savior announced.
John is the epitome of the preacher who interprets the word of God in regard to Christ. He is the herald who calls out to his listeners: "The king is on his way to be his hand the wrong rule of your ways, your false religiosity, your self-centeredness, and to make! Be ready to accept his rule over you! "
is the word of John the courtroom word and notice a beautiful event.
In some ways he represents the church that God directs message to the world.

So what is the abuse? .
The abuse is that the listeners of his message does not really want to compete on his message, but merely want to revel in his bond
That is, they do not place themselves under the Lordship of Christ, but want the pleasures of his visit - ie of Christianity -.
you want to enjoy the fruits of harvest and enjoy without having to plant the tree
Is that possible.? Not really. But it seems that you believe that a lot ...
They want to hear good news, that is enjoying 'good sermons', where you can intellectually agree with you. But you do not really want such detail that one's life really geared to the Christian message.

If we so often encounter an attitude today, it appears this statement of Jesus in John's Gospel, that it is not new.
I think we all inclined / are at risk to abuse God's word and his message in such a way. In particular, the Puritans have recognized this and wrote about it several times.
A good help for self-examination offers as John Owens' Apostasy from the Gospel ', under the name "The risk of dropping " came out again in German (3L-Verlag). In short form

can also take to heart the 160th Question and Answer of the Westminster Larger Catechism helpful (internalize before tasting the next sermon):

What is required of those who hear the preaching of the word?

Answer: Of those who hear the preaching of the word, demanded that they give with diligence, preparation and prayer mindful examine what they hear according to the Scriptures, the truth with faith, love, gentle and more than willing to accommodate word of God, think about it and discuss, keep it in their hearts and bring them fruit in their lives.

.

Saturday, September 25, 2010

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benefit from the economy and whether it is a science

"The recent financial crisis was more a failure of engineering and management of the economy rather than [...] economics. So

Ben Bernanke , Chairman of the U.S. central bank. This statement is regarded as a retort to Paul Krugman . He had asked September 2009 in the New York Times how economists could have so deceived that they have learned of the coming crisis noticed next to nothing.

The retort of the central bank chief, however, shows only one, namely that it is subrogated to the sophistry of mainstream economics in flesh and blood. As Keynes has been found that brain washing rhetoric of neoclassical economics is in fact to prove that they preferred to things that have to do with the matter in question at all.

On the same way "proves" Bernanke, that the science of economics is important for government and industry. Paul Krugman has been questioned but nothing like that, but principally, that the theoretical foundations of mainstream economists are inadequate to explain real economic crisis. Bernanke is a topic not. He needs the scholasticism of the neo-classical models so only to herauszuzaubern from the magic hat its monetary and economic policy rabbits. He is not about scientific explanation, but pseudo-explanation , coupled with apparent legitimacy. Not to truth, but for the short-term ideological advantage.

Note: For followers of an ideology, it will never be the ideology that turns out to be false. It may be only the practical implementation for them to leave something to be desired.

This is certainly an economic "science", which shows a kindred spirit with the "policy" of the Republicans, Krugman sees as "an attack on the arithmetic". Namely the one hand condemn the government deficit, and increase the revenue on the other hand do not and particularly the powerful tax-citizens of the country (if they are still in the country) to enlighten the tax cuts. Not only the empirical truth, but also the most fundamental rules of arithmetic are violated. But: as long as good is it ...!

Crise: les Bernanke Toldbehandlet Economistes . Le Monde, 25 September 2010.

Wednesday, September 1, 2010

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ergodicity

When you see the path of a controlled economy over time into the future as a stochastic process (the statisticians, according to a probability distribution subject), so therefore determined that future results of present decisions by this probability distribution.

It seems logical that if a decision maker's decisions would create reasonable statistical information about the future based, it would have to select a sample based on future data sets . Lay As can obtain this sample, however, virtually impossible (because the future is not known), makes it so, been many economic theorists simply the heroic assumption that the economy will be statistically described as an ergodic process. That is to say that random samples are drawn from available data sets from the past or the present, could be treated as logically equivalent samples from the datasets of the future.

Technically speaking: The realization of a stochastic process is defined as a data point of a multidimensional variables over a period of time or the time series values of recorded results. A stochastic process describes therefore a universe of such time series. Time statistics are based on statistical averages (mean, median, standard deviation, etc.), derived from a single realization over a period of calendar time. Spatial statistics on the other hand refer to statistical averages at a particular time of the universe of realizations, which are here on cross-sectoral (cross-sectional) or cross-sectional data are measured at the respective dates on each individual.

if and only if the stochastic process is ergodic, then for an infinite realization of the time statistics and spatial statistics . Coincide For finite realizations they coincide apart from random errors. In other words, time and spatial statistics tend to converge to it (with probability 1), insofar as increasing the number of observations. Consequence, if the axiom of ergodicity applies, are statistics that are obtained either from past or from cross-sectional data, statistically reliable estimates for spatial statistics at any future date.

The future is therefore never uncertain. For it can always be calculated from data available from the past or the present of the likelihood.
The axiom of ergodicity plays the logically equivalent role as the order axiom in the classical deterministic economy that is the assumption that at any time an economic entity knows all the future results of his decisions and he can arrange this logically correct according to its own preferences.

The terminology of ergodicity only in 1935 was explicitly designed by the Moscow mathematical school of probability theory and has been known until after 1945 in the West. She was therefore Keynes unknown.

Non Nevertheless, in the opinion of Paul Davidson shows the critique of Keynes on econometric methodology Tinbergen, Keynes implicitly that the applicability of the Ergodizitätsaxioms on the development of an economy denies. For Keynes, the future is uncertain, an entrepreneur can never be reliably calculated in advance whether an investment decision is rationally justified. It remains only to stay here to explain the so-called "animal spirits" of entrepreneurs, which Keynes had meant nothing more than "gut feeling" of the decision maker who can never know the future ahead, especially those not charged at the traditional methods of mathematics can.

It follows from this for the traditional economic theory, however, the fatal result that in theory is nonsense to expect that markets function could meet the efficient and optimal allocation of resources. This is even more so for the financial markets. According to Keynes, the main function of the same, the economic agents is to provide liquidity. Because liquidity in the diet is capitalism the mechanism of how the uncertainty can be addressed practically.

Source:
Paul Davidson: John Maynard Keynes. Palgrave Macmillan. ISBN 13-978-1-4039-92623-7. ISBN 10-4039-9623-7. P. 31ff.