Re: investment and unemployment

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

Harry Veeder wrote:

<<SNIP>>

> Deflation is a symptom of depression, not its cause.

Not even a symptom of depression, just a coincidence.

Change in the value of money is entirely within the control
of the monetary authority; control of economic activity can
be found only elsewhere in such circumstance as the
distribution of purchasing power between those with a
"propensity to save" and those with a "propensity to spend."

If economists ever loosen their blinders they might
recognize that it was the inevitable change in that
distribution that gave monetary expansion the appearance of
leading to economic activity. Because of the uncertainty as
to what direction that change will take such monetary policy
also gives rise to stagflation, hyperinflation or
depression. Should such an admission ever be made then, just
maybe, they will set aside their false belief in the use of
monetary policy to affect economic activity and search for
the true cause-effect relationships of macroeconomics.

--
			-- jbod

		Tax Privilege, Not People
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