Re: More money or better distribution?

[Paul Davidson <pdavidson@xxxxxxx>]

Correcting my typos:

>The trouble with your illustration is that it attempts to be a "when did
>you stop beating your wife?" question.  Even worse, however, since you
>ASSUME PNEQ --then you are dropping this money into the economy from a
>helicopter, i.e., an exogenous money supply which has no effect on either
>interest rates of the marginal efficiency of capital.  In fact you are
>implicitly assuming all spending is consumption and is strictly a function
>of wealth
>
>W hen you understand the concept of an endogeneous oney expanding to meet
>the increased needs of trade you will understand why dQ/dN does not equal
ZERO
 -- and why if the banking system does not expand to meet the
>increased needs of trade , that is if dM=0 by some constraint on the
banking system, then dQ will be constrained to
>zero.
>
>Case closed.
>
>Paul Davidson
>Holly Chair of Excellence in Political Economy
>Economics Department -- 523 SMC
>University of Tennessee
>Knoxville, Tennesseee 37996-0550
>email: Pdavidson@xxxxxxx;   phone: (423)974-4221;    fax: (423) 974-1686
>
>
Paul Davidson
Holly Chair of Excellence in Political Economy
Economics Department -- 523 SMC
University of Tennessee
Knoxville, Tennesseee 37996-0550
email: Pdavidson@xxxxxxx;   phone: (423)974-4221;    fax: (423) 974-1686