Re: Full Employment is what?

["Forstater, Mathew" <ForstaterM@xxxxxxxx>]

on budget balancing and elr:

although the CofFEE and CFEPS gangs are very clear about the link between
functional finance and ELR (see papers/books by Mitchell, Watts, Wray, Bell,
Mosler, Forstater, etc.), there is some other work by Phil Harvey of Rutgers and
by Ed Nell of the New School that may be of interest.

Phil Harvey recognizes that politically deficits may be hard to sell, so he
tries to show that elr can be run without deficits. He has a few papers where he
deals with this, possibly his JEI article from June 1998 I believe and his
chapter in the Vickrey memorial volume, Commitment to Full Employment, from M.
E. Sharpe, edited by myself, Sumner Rosen, and Aaron Warner (including chapters
by Davidson, Galbraith, Heilbroner, and others). (it should be said that the
CofFEE/CFEPS gangs are wary of this strategy, following Lerner's warnings that
the 'deficit dove' position gives too much away--see my paper "Functional
Finance and Full Employment" a short version in JEI June 1999 and a longer
version as a Levy Working Paper.)

Nell has run an elr through the Fair model and found that it is hard to run
deficits with a true elr, hard as you try, due to automatic stabilizers.  See
his working papers at http://www.cfeps.org