PKT message, Re: Sweden - Monetary Policy

Re. the following:

> The axiomatic premise for the tautological certainty is that
> the only way to aggregate the output of an economy is to add
> the components by their dimension of value and the "price"
> of money is the value of the goods and servces it can buy.
> Therefore, no matter how much money exists or is "produced"
> it does not change the value of the stuff that money buys.

This concerns money as unit of account.

Adding a zero or two to the nominal 'value' of the unit of account used by national accountants "to aggregate the output of an economy" has NOTHING to do with either "how much money exists"/is "produced" or how the "production" of new money may relate to factor employment and output.

Hence my "Fiddlesticks!" response to your original statement:

> 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 Production Credit is a means to employment and output - it "causes economic production".

Gunnar

----- Original Message -----
From: "John O'Donnell" <jackodonnell@xxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Sent: Monday, April 30, 2001 3:33 PM
Subject: Re: Sweden - Monetary Policy - Bentham

> Gunnar Tomasson wrote:
> >
> > Re. the following:
> >
> > > 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.
> >
> > A "tautological certainty" is such with respect to some given set of
> > axiomatic premises - thus, a "tautological certainty" in Euclidean
Geometry
> > is not such in non-Euclidean Geometry.
>
> The axiomatic premise for the tautological certainty is that
> the only way to aggregate the output of an economy is to add
> the components by their dimension of value and the "price"
> of money is the value of the goods and servces it can buy.
> Therefore, no matter how much money exists or is "produced"
> it does not change the value of the stuff that money buys.
>
> If you have another premise that avoids the tautology that
> no matter how much is produced, each dollar's, or yen's or
> pound's or mark's worth of product is valued at a dollar,
> yen, pound or mark, respectively.
>
> I'll look for your response, I prefer not to argue with the
> dead.
>
> <<SNIP>>
>
> --
> -- jbod
>
> Tax Privilege, Not People
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>