PKT message, Re: Keynesian Christmas!

Bill Mitchell: "As long as taxation collections can be made Argentina should..."

But Bill, Clifford Krauss in the New York times December 22 reported, "Forty percent of Argentines do not pay their taxes..."

So now what?

>From: Bill Mitchell

>To: pkt@xxxxxxxxxxxxxxxx

>Subject: Re: Keynesian Christmas!

>Date: Tue, 25 Dec 2001 07:38:51 +1000

>Dear PKT

>Classic case for a Job Guarantee...

>As long as taxation collections can be made Argentina should:

>(a) abandon the currency peg against the dollar.

>(b) renegotiate all foreign contracts held by the govt in the peso.

>take it

>or leave it.

>(c) introduce a JG with wages in peso.

>(d) introduce short-term price controls if needed.

>(e) absolutely resist dollarisation.

>best wishes

>bill

>>Economic measures in Argentina (for the next 60 days??):

>>1. Default: no interests payments, no principal payments (if any);

>>2. Third Currency: Treasury Notes...to pay for emergency expenses,

>>such as

>>#3......;

>>3. Employment Program of 1m jobs supervised by an NGO...Provinces

>>must

>>create

>>ANY job and the Govt. will pay 200 "notes" (dollars). This

>>quasi-currency

>>will

>>float against the dollar;

>>4. No devaluation, no dollarization,.1peso=1"note"=1 dollar.....

>>comments???

>William F. Mitchell

>Professor of Economics

>Director, Centre of Full Employment and Equity

>University of Newcastle, NSW, Australia

>E-mail: ecwfm@xxxxxxxxxxxxxxxxxxxxxxx

>Phone: +61-2-4921 5065

>Fax: +61-2-4921 6919

>Mobile: 0419 422 410

>http://e1.newcastle.edu.au/economics/bill/billeco.html

>http://www.billmitchell.org