Re: Sweden - Monetary Policy

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

Gunnar Tomasson wrote:
>
> > First, monetary policy can and should be used solely to
> > maintain the value of the currency. The fable that it can
> > "prime the pump" or any other such nonsense purporting to
> > overcome the tautological certainty that printing money only
> > rearranges the chairs; it doesn't and can't actually cause
> > economic production.
>
> Fiddlesticks!
>
> This is the viewpoint of James Mill and David Ricardo, whose trashing of the
> contrary view stated by Jeremy Bentham in the early 1800s has - or should -
> long since have been assigned to the dustbin of history.

It could be that the earth should be the center of the
universe but facts are facts and printing more money does
not add to the value of anything. A tautological certainty
is a tautological certainty no matter what Mill, Ricardo,
Bentham or even Gunnar may claim.

>
> Gunnar
>
> ----- Original Message -----
> From: "John O'Donnell" <jackodonnell@xxxxxxxx>
> To: <pkt@xxxxxxxxxxxxxxxx>; "Sven R Larson" <larson@xxxxxx>
> Sent: Friday, April 27, 2001 9:13 PM
> Subject: Re: Sweden
>
> > Sven R Larson wrote:
> > >
> > > I get the feeling that there might be more interest in Sweden following
> > > the postings about the EU demonstrations, and since the mere topic
> > > "Sweden" makes my stomach turn upside down I'll make one and only one
> > > contribution. After this one I don't want to have anything to do with
> > > that topic anymore. So please excuse me for writing a long one here.
> >
> > Why is it that economists insist there are only two sides to
> > economics? Give a little thought to a third way.
> >
> > First, monetary policy can and should be used solely to
> > maintain the value of the currency. The fable that it can
> > "prime the pump" or any other such nonsense purporting to
> > overcome the tautological certainty that printing money only
> > rearranges the chairs; it doesn't and can't actually cause
> > economic production. For a fuller explanation of this
> > tautological certainty see _Supply and demand, Again_ at:
> > http://www.geocities.com/jackodonnell.geo/chap13r3.html
> >
> > Second, the FORM of taxes is as important or more so than
> > the amount of taxes. Taxes that resolve to "variable costs
> > of production" ALL create a wedge between buyer and seller
> > that reduces the point of maximum profit for producers while
> > taxes that resolve to "fixed costs of production" do not.
> > For a further explanation of this truth see _Taxing
> > Monopoly_ at:
> > http://www.geocities.com/jackodonnell.geo/c03r5a.html with
> > further explanation in _Sharing Nature_ at:
> > http://www.geocities.com/jackodonnell.geo/c04r4a.html
> >
> > Thirdly, recognize that the burden placed on welfare
> > recipients trying to enter the workforce is typically
> > greater than that placed on any other members of society.
> > However, a grant to ALL citizens without any conditions of
> > income will tend to reduce the wage level that increases
> > variable costs of production while it concurrently increases
> > the standard of living. The tale continues in part 2 of
> > _Sharing Nature_ at:
> > http://www.geocities.com/jackodonnell.geo/c04r4p2a.html
> >
> > <SNIP>>
> > --
> > -- jbod
> >
> > Tax Privilege, Not People
> > ___________________________________________________
> > Come visit and see a new economic perspective --
> >        http://www.geocities.com/CapitolHill/1067
> >            Comments/arguments welcome.
> > .
> >
> >

--
			-- jbod

		Tax Privilege, Not People
___________________________________________________
Come visit and see a new economic perspective --
       http://www.geocities.com/CapitolHill/1067
           Comments/arguments welcome.
.