I like this post by DeLong. I think there is something to his point, though I think there's a much simpler reason why people against government spending may be incorrect, and it lies not in their assumptions about the velocity of money per se, but in their assumptions regarding the relationship between income and spending and the tendency to hoard in times of crisis.
The whole point of the Keynesian revolution was to point out that in a dynamic (time and reality based) model with inventories etc., income and output in a given period do not always have to equal spending. And that, even when they do become equalized, spending (or total demand)can have a positive effect on output precisely because complete crowding out at best takes a long time to occur and, more realistically, never happens.
This is particularly true now since a significant portion of money in the private sector is NOT being spent or loaned - it is being HELD. I don't know how many times I need to say this. Money being HELD is NOT being used for consumption or investment, by ANYONE - it represents idle capacity. So, it only makes sense that we allow our federal government who is WILLING to spend our money to borrow our money that we are not using, and spend it on projects that will benefit us both in the near term and in the future.
7 comments:
Hello from about 300 miles east. I came upon your site by a Goolge Alert of a mention of Hyman Minsky. We did a one day session under the theme "Reimgining Economics" on Jan 17 which was modestly well attended. The project of increasing public literacy regarding oikos-nomia has been slow at best. The whole circulation of money thing, as a legal institution to facilitate exchange concept seems to be constantly subverted by the dismal practitioners in the service of Mammon inc. I've had involvement with AMI in the past, Zarlenga even stopped here at one point for presentation on his way to Indianapolis to an ACRES conference. I wish that he was less of an anti economist, self taught monetary historian (of the "great"... variety) and could see where their/his proposal would fit well within an Keyesian/institutionalist a'la Minsky agenda, but then he has refused to see the value of using community currency as a mode and means to educate by simulation and culture building. Keep rolling that stone. T.
hi
visit www.yoxyart.blogspot.com
Genial fill someone in on and this enter helped me alot in my college assignement. Thank you seeking your information.
Easily I to but I contemplate the post should acquire more info then it has.
replica handbags is a high-end luxury French fashion and leather merchandise brand headquartered in Paris. The late louis vuitton founded the company and it is well known in the fashion world for louis vuitton handbags designer handbags, luggage and other fashion louis vuitton bags accessories.
hollister, herve leger, canada goose, insanity workout, nfl jerseys, canada goose, soccer jerseys, north face outlet, p90x, ugg, uggs outlet, canada goose, marc jacobs, new balance shoes, ugg pas cher, canada goose outlet, ferragamo shoes, canada goose uk, celine handbags, jimmy choo outlet, abercrombie and fitch, reebok outlet, mac cosmetics, longchamp, wedding dresses, ugg boots, beats by dre, mcm handbags, asics running shoes, ghd, giuseppe zanotti, babyliss pro, soccer shoes, canada goose jackets, ugg boots, ugg australia, lululemon outlet, birkin bag, mont blanc, north face jackets, nike huarache, nike roshe run, bottega veneta, chi flat iron, rolex watches, instyler, vans shoes, valentino shoes
montre homme, iphone 6 cases, thomas sabo, swarovski crystal, hollister clothing store, swarovski, lancel, rolex watches, moncler, ray ban, wedding dresses, air max, hollister, ugg, ralph lauren, coach outlet store online, pandora jewelry, converse, baseball bats, oakley, louboutin, juicy couture outlet, moncler, gucci, air max, pandora charms, hollister, moncler outlet, timberland boots, louis vuitton, toms shoes, juicy couture outlet, canada goose, vans, parajumpers, moncler, ugg, pandora charms, canada goose, moncler, moncler, links of london, converse shoes, moncler, supra shoes, karen millen
Post a Comment