Re: What’s the deal with conservatives, economists, and the minimum wage?
On Jan 18, 2007, at 11:32 PM, Wojtek Sokolowski wrote:
To play devil’s advocate, one can argue that the price of assets is a reflection of the anticipated future return that the asset will generate, so it is the anticipated furure demand (on the assumption that demand for an asset is driven by its yield) that is driving the price, not vice versa, pretty much in the same way as the current demand increase pushes current prices upward.
What do you think drives anticipations of the future, if not the
recent past? There’s nothing to make people think the price of an
asset at time t+1 will be greater than the price at time t than the
fact that the price at time t is greater than that at t-1, and
t-1>t-2, etc.
Doug