Re: Dollarization

["Alan G. Isaac" <aisaac@xxxxxxxxxxxx>]

On Sat, 9 Dec 2000, Henry C.K. Liu wrote:
> it is obvious that Alan Isaac is Pkt's resident dissident supplysider.

The term ``supply-sider'' is vague, but rhetorically it generally
suggests adherence to a group of beliefs that are completely
ungrounded in theory and evidence.  These views are generally
window-dressing for using tax policy to promote the interests of the
wealthy. (For example, the Laffer-curve claim that we can increase tax
revenues by cutting tax rates, or that we can get large increases in
investment by permanenly cutting capital gains taxes, and so on.)

Like Keynes, however, I do claim that aggregate supply concerns play a
role in understanding even short-run macroeconomic behavior.  (See the
General Theory.)  From a policy perspective, however, aggregate demand
concerns generally loom larger in this context.

Alan

PS Apparently you did not read the paper I sent you, which was an
exploration of the role of monetary policy in a conflicting claims
model with endogenous money.  Not exactly a ``supply sider'' exercise.