elasticity of production

[dequech@xxxxxxxxxxxxxx]

After sending my last post I received one from Kazuhiro in which he cites
the passage of chapter 20 I mentioned. So, please, Kazuhiro, see that post
for an indirect comment on yours.
I also received Paul's response to Kazuhiro. Thus, I should add one thing.
I said that the definition of the elasticity of production in chapter 20 is
better for Kazuhiro and Basil to make their point than the one in chapter
17. The reason is that the former is expressed in terms of changes in
quantity produced, not labour. Since Basil and Kazuhiro have in mind that
with endogenous money the quantity of money may increase in response to an
increase in demand, they could use that definition. However, as Paul
pointed out, the discussion of the elasticity of production *in Keynes* is
tied to production (not just supply). Chapter 20 actually reinforces this.
The thing about money is that it is not a "product of industry".

Cheers,
David Dequech