RE: Euro Rates Slashed

["Mason A. Clark" <masonc@xxxxxxxxxxxxx>]

At 08:50 AM 12/7/98 -0500, you wrote:
>> 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

   Don't forget the implicit ceteris paribus.  What about the state
   of public confidence?  The propensity to consume? The optimism
   of entrepreneurs -- managers -- banks?

   I, the great unwashed public, will determine the rate of unemployment.
   ----- along with the capital mobility and immigration policy etc etc.

  Fiscal and monetary be damned.

            Mason