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Re: [Pen-l] Re: Reality catches up with catastrophists

Michael Perelman wrote:
> Jim is exactly correct, as John Law's experiment in France proved, but
> this kind of growth is difficult to sustain relative to a more balanced
> form of growth based on normal incomes.  Of course, under capitalism
> stability is only relative.

we should be careful here. Pre-Keynesian business cycle theory (cf.
Haberler's book) said that raising money supply (or M*V) growth would
lead only to temporary and unstable booms, because imbalances would be
result that needed to be purged by recession. Some Marxists agree. On
the other hand, one of Keynes' contributions is to point out that
under certain circumstances, such as the aftermath of a severe
recession or during a depression, M*V growth can actually lead to
persistent prosperity.
-- 
Jim Devine / "Nobody told me there'd be days like these / Strange days
indeed -- most peculiar, mama." -- JL.
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