RE: Euro Rates Slashed

[sawicky@xxxxxxxxxx (Max Sawicky)]

> Can anyone who's a POST-KEYNESIAN on this list explain to me how interest
> rate cuts can help cutting unemployment, when at the same time budgetary
> austerity is being institutionalized via the EMU system? I say statistics
> show there is at least a 9:1 advantage in using fiscal policy to boost
> investment -> increase employment, over cutting interest rates. Therefore,
> when interest rates AND government spending are being cut simultaneously,
> the net result is most likely MORE unemployment, not less.
> . . .

The U.S. situation would seem to be hard to explain,
in this context.

mbs