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Western Economies and Ponzi Games
Most forums seem to have an attractor around this issue.In all Hamiltonians we deal in economics classes, we are faced with the "transversality" or " non-ponzi" conditions to ensure a nice solution. If we are indeed in a ponzi game, then shouldn´t we consider all these results "flawed" ?
Western Economies and Ponzi Games
I think that even an infinite sum/integral in these problems is weird. Do you really plan for an infinite future? Do you really know a price of something you have never seen? Are all prices at a given time being settled? In the neoclassical economics there are more problematic concepts... Problem is that instead of asking whether they hold (critical rationalism) people believe them and take them as they have to be right -- nowadays, it is more religion. ...Don't take these toy models too seriously;-)