Re: Keynesian Christmas!

[<mosler@xxxxxxxx>]

So far seems they are doing the right thing!

Ignoring old tsy-$US-peso debt.

Collect taxes in a new currency.

Spend only the new currency.

Now lets see if they offer a national service job to
anyone willing to work for the new currency.
And not sell tsy secs in new currency and leave {interbank[
interest rates at 0
bid etc.

w

pkt@xxxxxxxxxxxxxxxx wrote:
> 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