Re: More money or better distribution?

["John B. O'Donnell" <jackodonnell@xxxxxxxx>]

Bruce R. McFarling wrote:
<<SNIP>>
>         How about multiple choice ( "<>" means "not equal")

An interesting presentation of relationships to which I respond:
>
> (1) Which is the best description of the causal links between Q and M:
If "M" is limited to cash and reserves;
>         (a)     dQ/dM =  0, dM/dQ =  0
If "M" includes liquid money substitutes [i.e. -- Bank checkable
deposits.];
          (c)     dQ/dM =  0, dM/dQ <>  0
<<SNIP>>
> (2) Which is the best description of the causal links between Q and i:
>         (b)     dQ/di <> 0, di/dQ =  0
<<SNIP>>
> (3) Which is the best description of the causal links between i and M:
If "M" is limited to cash and reserves;
>         (b)     di/dM <>  0, dM/di =  0
If "M" includes liquid money substitutes;
          (d)     di/dM <> 0, dM/di <>  0
<<SNIP>>

Now for a small change in the questions:

(1) Which is the best description of the most probable statistical
correlation links between Q and M:
<<SNIP>>
        (d)     dQ/dM <> 0, dM/dQ <> 0

(2) Which is the best description of the most probable statistical
correlation links between Q and i:
<<SNIP>>
        (d)     dQ/di <> 0, di/dQ <> 0

(3) Which is the best description of the most probable statistical
correlation links between i and M:
<<SNIP>>
        (d)     di/dM <> 0, dM/di <> 0

And, as we all know, statistical correlation does not distinguish among
cause, effect or coincidence, but that does not stop those who so chose
from asserting such correlations as "proof" of their beliefs.

Also, see my response to
Subject: Re: More money or better distribution?
      From: "William B. Ryan" <william_b_ryan@xxxxxxxxxxx>

for a more detailed response to the care and use of these partial
differentials.

And, finally, I reserve the right to change my answers in the face of
convincing argument.

<<SNIP>>
			-- jbod

		Tax Privilege, Not People
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