Fwd: Re: Article from THE GUARDIAN, September 18, 2000

[Paul Davidson <pdavidson@xxxxxxx>]

> Date: Wed, 20 Sep 2000 13:41:44 -0500
> To: "J. Barkley Rosser, Jr." <rosserjb@xxxxxxx>
> From: Paul Davidson <pdavidson@xxxxxxx>
> Subject: Re: Article from THE GUARDIAN, September 18, 2000
>
> At 12:48 PM 9/20/00 -0400, you wrote:
> > Paul,
> >       I fear that things are not so simple, as
> > I
> > think you well know.  There is complacency in
> > the US partly because of the strength of the dollar.
> > But that strength is the flip side of the continuing
> > decline of the euro.  Perhaps in the EU they might
> > welcome a proposal such as yours, but not in the
> > US.  But, if the dollar crashes, that means the euro
> > will be doing well, so they presumably won't be
> > interested then.  Unfortunately it would probably
> > take a full scale global depression to bring it about.
>
>
> Barkley:  The global depression is the worst possible scenario for a
> new Bretton Woods.  But I truly believe if the dollar was attacked,
> the result of falling values of foreign portfolio investments would be
> sufficient for the politicians to realize a new financial architecture
> should be explored.
>
> We are again beginning to experience collapsing financial markets in East
> Asia.  Will that again bring on contagion?
>
> Paul

Paul Davidson

Editor, JOURNAL OF POST KEYNESIAN ECONOMICS

Holly Chair of Excellence in Political Economy

Economics Department - University of Tennessee

523 SMC

Knoxville, Tennessee 37996-0550

work phone: (865) 974-4221

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home fax: (865) 577-7748