Re: Burkett and Hart-Landsberg on Japan and East Asia

["J. Barkley Rosser, Jr." <rosserjb@xxxxxxx>]

Paul,
      Would your IMCU system resolve these problems
that happened in East Asia?  You presumably
would not have stopped that interbank borrowing.
The resolution is to really fix exchange rates then?
Barkley Rosser
----- Original Message -----
From: "Paul Davidson" <pdavidson@xxxxxxx>
To: "J. Barkley Rosser, Jr." <rosserjb@xxxxxxx>
Cc: <pkt@xxxxxxxxxxxxxxxx>
Sent: Thursday, March 22, 2001 1:08 AM
Subject: Re: Burkett and Hart-Landsberg on Japan and East Asia


> At 06:00 PM 3/21/01 -0500, you wrote:
> >      [long]
> >      I have finished reading a very stimulating and
> >provocative book on the East Asian situation in
> >general and would like to throw its observation
> >into the discussions occurring on both these lists.
> >The book is _Development, Crisis, and Class
> >Struggle: Learning from Japan and East Asia_,
> >by Paul Burkett and Martin Hart-Landsberg, 2000,
> >St. Martin's Press.
> >      They argue in contrast to most of the press at
> >l.
> >       In particular they critique five perspectives that
> >they identify: neoliberal, structuralist-institutionalist,
> >"flying geese," "Greater China," and dependency theory.
> >Of course I am short shrifting here, but a quick critique of
> >the neoliberal position can be seen in how its advocacy
> >of free capital movements blew up in the East Asian crisis.
> >They also argue that export-led growth faces inevitable
> >limits.
>
>
> See my chapter in Post Keynesian Macroeoconomic Theory (1994) to the
> dangers with relying on export led growth!!
>
> >  OTOH, they see the  neoliberals as dominating the
> >policy discussion.
>
>
> So what else is new?
>
>
> What brought the east Asian tigers down was interbanking borrowing from
> Japan at near zero interest rates to relend at high rates in their own
> nations , while their currency was pegged to the dollar but their
> annual  debt  service was in yen.  When the yen went from 110 to the
dollar
> to 77 rto the dollar, the local banks could not service their debt. and
the
> coun try quickly ran out of reserves.
> >       They declare that a more clearly class-based approach
> >is needed.
>
>
> That is just nonsense, there is nothing wrong with the entrepreneurial
> system once we get the international payments system fixed!. It berats any
> class based ==them vs us system!!
>
>