Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Yes, but the neoclassicals assume that doing something about the short-run loss of output comes with the cost of lowering the slope and/or offset of the long-run growth path. And since the long-run path continues indefinitely, there exists a discount rate at which it makes sense to accept the short-run cost.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Nov 3rd, 2011 at 12:58:37 PM EST
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