Velocity Wanted: A Trade-off in Eternity
“It was many and many a year ago, In a kingdom by the sea , Those two maidens there lived whom you may know By the name of Annabel and Lee ” (sorry for the so many unauthorized variations). Both are presupposed to live for 125 years in the kingdom; the royal economy is eternally stuck to “the natural level of output,” or g= 0 in arithmetic of Annabel and Lee. In 25 years after legitimate conception and subsequent birth, the two maidens begin to take different routes of life: the Cambridge way , viz., π= g+ m= m , vs the Princeton way , namely, π= g+ 2m= 2m . Note: The Cambridge Quantity equation by J.R. Hicks (1937): M d = k ∙ P ∙ Y The money demand by William Baumol from Princeton (1952): M d = ( b ∙ P ∙ Y / 2 i ) 1/...