Mosler: seminar

["William B. Ryan" <william_b_ryan@xxxxxxxxxxx>]

1.  Regarding Mosler's seminar introduction:

http://csf.colorado.edu/mail/pkt/may98/0357.html

Reference was made to a "Professor Mathew Forstater."

Who is Professor Forstater?

2.  Mosler's usage of the terms "horizontal," "vertical," "endogenous"
and "exogenous" do not appear to conform to conventional Post Keynesian
usage.

3.  Mosler's thesis is that money, in every form and from whatever
source, derives its value from the imperative to pay taxes in government
issued "currency."

It is not as simple as that.

Conceptual analysis of the money supply is difficult, because it is a
complex composite of several components arising from several
sources--exogenous and endogenous to the economy of market transactions.

There is 1) Fiat money issued by the sovereign authority of government,
which is spent into circulation, 2) Bank credit, which derives from the
private contract between banker and entrepreneur, that is loaned into
circulation, and 3) The revolving fund of finance, which derives in the
first instance from the concatenation of fiat money and bank credit.

Neither government's spending of fiat money or the lending of bank
credit is supply constrained; it therefore tends to drive the interest
rate curve toward the "horizontal."

But the revolving fund of finance is ~instantaneously~ measurable, as if
it were a commodity; it is supply constrained. Therefore, the demand for
loans from the fund tends to drive the interest rate curve toward the
"vertical."

See:  http://csf.colorado.edu/mail/pkt/may98/0001.html

Bill Ryan


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