Re: Stiglitz on Soros

["Gunnar Tomasson" <gunnar.tomasson@xxxxxxxxxxx>]

Re. the following:

 

Proviso #1 prevents accounts at the clearing house being held by the public. 

 

Comment: 

 

Under present world monetary arrangements, there is no necessary link between a country's external surplus or deficit incurred in any given period, on the one hand, and concurrent changes in the net foreign asset position of its Central Bank and/or other official financial agencies, on the other hand. 

 

Absent appropriate structural changes in such arrangements, there would be no necessary link between changes in a country's official balances with the Clearing House and any concurrent surplus/deficit on its external payments account.

 

Are such changes envisaged under your proposal?

 

Gunnar

 

 

 

 

 

----- Original Message -----

From: Paul Davidson

To: Gunnar Tomasson

Sent: Friday, May 10, 2002 10:52 AM

Subject: Re: Stiglitz on Soros

At 08:53 AM 5/10/02 -0400, you wrote:

Would ALL accounts with the Clearing House be held by Central Banks and/or
other official agencies?

Proviso #1 prevents accounts at the clearing house being held by the public.

paul

Paul Davidson

Editor, JOURNAL OF POST KEYNESIAN ECONOMICS

Economics Department - University of Tennessee

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