Re: pkt seminar on the economics of the crisis

[paul davidson <pdavidson@xxxxxxx>]

At 12:55 PM 9/24/01 ,
harry wrote:
> OK. This is why we need a new "financial architecture".
> The principles of Keynesian money can be used to fight the spread
> of abnormal (hateful, fearful) entrepreneurial activity. However,
> Keynesian principles by themselves do not help us to understand
> normal (caring, hopeful) activity which is characteristic of most
> entrepreneurial activity. Therefore it also does not tell us
> how to *properly* stimulate such normal activity.
> A new "financial architecture" will prevent *abnormal* economic
> growth but it will not stimulate *normal* economic growth.


A new financial architecture that has built into it all 8 proviso's of my
IMCU will be not only a necessary condition for making sure
abnormal(?)  activity can not occur -- but it will also provide a
sufficient condition for creating expansionary effective demand in the
international sector during "normal" activity.  Norm,al growth , ,e.g.,
global growth in the last 25 years or so has not propomted global full
employment and prosperity.  In fact in many parts of the world, real GDP
has been less than socially desirable, and certainly less than what
resource availability can provide.  My IMCU proposal if you will read it
will encourage a golden age of economic development -- with the
extraordinary good global growth rates  experienced between 1950 and 1972,




> Harry Veeder
>
>
> ----------
> >From: Paul Davidson <pdavidson@xxxxxxx>
> >To: RHolt1234@xxxxxxx
> >Subject: Re: pkt seminar on the economics of the crisis
> >Date: Sun, Sep 23, 2001, 4:46 PM
> >
>
> >I just want to note that if my IMCU plan to reform the international
> >payments system was in place -- then
> >
> >(1) we could cut off dollars finance to bin Laden imediately,
> >
> >(2) we could cut off Afghanistan from buying goods clandestinely from other
> >nations of our "coalition".
> >
> >(3) if our intelligence agencies were working before September 11, we could
> >have had in place  an international auditing and accounting scheme that
> >could trace not only the flow of funds that supported the actual terrorists
> >living in our midst -- but also others living in the G7 countries at the
> least.
> >And at this point of time we could immediately place such an auditing
> >system into operation.
> >
> >Paul
> >Paul Davidson
> >Holly Chair of Excellence in Political Economy
> >Editor, JOURNAL OF POST KEYNESIAN ECONOMICS [JPKE]
> >Economics Department -- 523 SMC
> >University of Tennessee
> >Knoxville, Tennessee 37996-0550
> >email: Pdavidson@xxxxxxx;   phone: (865)974-4221;    fax: (865) 974-4601
> >home phone:(865) 573-9160
> >http://econ.bus.utk.edu/Davidson.html
> >