Re: Keynesian Christmas!

[pdavidso <pdavidso@xxxxxxx>]

>===== Original Message From "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.
>

Dollarization is not the solution -- but Henry is on to something.

Paul Davidson
Editor, Journal of Post Keynesian Economics
University of Tennessee
SMC 523
Knoxville, Tennessee 37996-0550
phone # (865)974-4221; fax #(561)737-8262;
email pdavidson@xxxxxxx
http://econ.bus.utk.edu/Davidson.html