Re: investment and unemployment

["Harry Veeder" <veed0001@xxxxxxxxxxxxxxxx>]

----------
>From: GGard97342@xxxxxx
>To: POST-KEYNESIAN THOUGHT <pkt@xxxxxxxxxxxxxxxx>
>Subject: Re: investment and unemployment
>Date: Fri, Apr 7, 2000, 9:10 pm
>

>In a message dated 07/04/2000 00:30:10 GMT Daylight Time,
>veed0001@xxxxxxxxxxxxxxxx writes:
>
>> A smart trader who can handle deflation responds by making less
>>  risky,
>>  more conservative investments, not by demanding the government do
>something
>>  to restore inflation.
>
>So he does, and that is why  the depression continued so long.
>
>Was that not Keynes' point?
>
>I make no apologies for regarding the first duty of a government to be to
>prevent deflation.
>
>Geoffrey Gardiner
>


Keynes treament for the depression was not to cause inflation.
I don't think he ever said "deflation is bad, we need inflation".
Inflation was simply a byproduct of the treatment (government
deficit spending) he prescribed. Deflation is a symptom
of depression, not its cause.

Harry Veeder