132 summer 2004

Does the Japanese propensity to save make stimulating their economy difficult?

Equations

Could we have done our analysis using equations instead of diagrams?

You bet. Equations are especially useful if the problem is more complex because adding variables is a lot easier than adding dimensions to the chalkboard. Plus, it is helpful to use numerical estimates of the slopes.

The technology for using M, G, and T to control the economy is similar to the technology for using thruster rockets to control a spacecraft. In the 1960's we learned to land a rocket on the moon (or the other side of the Earth).

Unfortunately, economists' effort to "fine tune" the economy were somewhat less successful than the NASA missions.