Re: More money or better distribution?

["John M. Legge" <jlegge@xxxxxxxxxxxxx>]

Keynes joke about burying money was a satire on gold, as reading it context
makes clear.  The orthodox of his day would not "print" (i.e. allow the
money supply to grow by deficit financing) money to overcome a crisis, but
as Keynes pointed out, if someone had discovered a large new gold mine they
would not have prevented the discoverer digging up the gold and providing
liquidity to the economy.

He suggested that any mine would do, and they could dig up money instead of
gold if that was all that was available.

BTW, you seem to think that working capital is not needed by firms.  This
certainly puts you in a school of business all by yourself,

JML

Krugman's papers are nearly all on his personal home page
http://web.mit.edu/krugman/www/


-----Original Message (part)-----
From: John B. O'Donnell <jackodonnell@xxxxxxxx>
To: POST-KEYNESIAN THOUGHT <pkt@xxxxxxxxxxxxxxxx>
Date: Tuesday, 18 August 1998 10:42
Subject: Re: More money or better distribution?


>                       He [JMK} even went to the extreme of suggesting that
>"cans of money" be buried by government hired employees to be then dug
>up by the available but unemployed labor. All in all, not an irrelevant
>solution _IF_ the value of the currency is otherwise maintained.
>.