Monday, May 18, 2009

Production Decisions in the Real World

This is one of the very best economics articles I've seen in a long time. It traces the impact of demand shocks through the global supply chain and shows how the division of labor has created deep information problems that compound uncertainty and fluctuations. It is just crying out for a model based on those phenomena. To me anyway, it suggests that economic fluctuations are likely to be chaotic.

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