Re: Why economists do not care about high rates of unemployment w

[Paul Davidson <PB108928%UTKVM1.BITNET@xxxxxxxxxxxxxxxxx>]

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center  (615) 974-4221
Dear Anthony D'Costa: The petrodollar recycling came after the breakdown of
Bretton Woods. Nevertheless if you read my proposal for reforming the world's
monetary system you will see that loans is not an acceptable way for the surplu
s nations to accept the onus of the burden adjustment. The trouble with loans,
as the Petrodollar recycling has shown and is discussed in my Post Keynesian
Macroeconomic Theory (PKMT) book, is that loans merely creates a future debt
obligation which tends to make it harder for the deficit nation from breaking
cycle of deficits.
     By the way, with The NEW YORK TIMES today (20 April 1994) indicating that
the US has shown the worse trade deficit in six years -- despite Clinton's
lowering of the Federal government deficit -- indicates, as my PKMT book
makes clear, that it is THIRLWALL'S LAW and not the US budget deficit, that is
driving the US international debtor position. This lends even more credence to
the necessity of adopting a proposal based on the 8 points of my reforming
the worlds money analysis (Ch. 17 of PKMT) if the global economy is not to
sink into a globally stagnating system -- similar to but hopefully not as bad
as the 1930s.

Have a good day!____Paul Davidson
))))_ fax # (615) 974-1686