Re: Keynesian Christmas!

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Argetntina should file for bankruptcy under Argentina law and have all dollar
debts discharged by Argentina courts.  Foreign banks will not lend to Argentina
for a while, which is precisely what Argentina needs: to avoid any new foreign
debts.  Instead of a currency board, Argentina should proceed with a monetary
regime based strictly on the State Theory of Money.  All Argentina exports must
be paid in new Argentina currency, thus creating a global demand of its new
currency.  A JG program can be financed with local currency backed by future
tax revenue. All dollar denominated commodities that Argentina must import,
such as oil, should be put on barter with Argentinan exports. Full employment
should be the starting point to revive the economy.

Henry C.K. Liu

Bill Mitchell 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