[PEN-L:28281] Re: It's Greedspan's Fault?

["Devine, James" <jdevine@xxxxxxx>]

Title: Re: [PEN-L:28275] It's Greedspan's Fault?

 

-----Original Message-----
From: Devine, James
To: 'Steve Diamond '
Sent: 7/21/2002 3:56 PM
Subject: RE: [PEN-L:28275] It's Greedspan's Fault?

Old-fashioned (New Deal) Democrats & left-laborites favored fiscal
policy over monetary policy (and cutting interest rates). Some went for
military Keynesianism, while others hoped for a stronger welfare state.

"New" Democrats, on the other hand, give all the power to the Fed, and
thus face the problem that Steve points to. I don't know what "new"
left-laborites say... Max?
Jim

-----Original Message-----
From: Steve Diamond
To: pen-l@xxxxxxxxxxxxxxxxxxx
Sent: 7/21/2002 12:04 PM
Subject: [PEN-L:28275] It's Greedspan's Fault?

What is hinted at here but not stated is that the Democratic/labor left
traditionally pushes for lower interest rates in the interest of
stimulating
economic activity but fails to take responsibility for the dynamics of a
speculative era in capitalism in which lower interest rates only stoke
the
fires of fictitious capital buildup.

Stephen F. Diamond
School of Law
Santa Clara University
sdiamond@xxxxxxx