Re: Stiglitz on Soros--question for Leigh

["Leigh Harkness" <Leigh@xxxxxxxxxxxxxxxxxxxx>]

Clifford

In response to my statement:

>  I recollect that even Keynes confused himself on
> this matter, mixing up monetary investment with real investment.

You wrote:

> I do not believe that Keynes, or even that most Keynesians have ever made
> this error. To the contrary. If you recall, the whole purposes for the
> Savings-Investment distinction made in every principles level text is
> precisely to distinguish between the purchase of financial instruments by
> households (savings-or financial investment) and the act of purchasing
> capital goods by firms (Investment). If anything, the distinction between
> "monetary investment" and "real investment" is basic and fundamental to
> Keynes and Keynesians.

My recollection (I don't have a copy with me) was that there was some
confusion in Keynes's "Treatise on Money".  Keynes himself writes in the
General Theory (Chapter 7 part III) that "the exposition in my Treatise on
Money is, of course, very confusing and incomplete in the light of the
further developments here set forth."

I continue to find even his General Theory confusing.  That reflects more on
me that the greatest explorer of macro-economics in the last century.

Leigh