imcu questions

[<mosler@xxxxxxxx>]

>This the most obvious statement of yours indicating
>you position depends on
>Say's Law.
>WHY?  AS IN Y PAPER, EXCHANGE RATE POLICY AND FULL
>EMPLOYMENT, THE REASON YOU CAN MAINTAIN FULL
>EMPLOYMENT WITH FLOATING FX IS THAT THERE ARE NO
>FINANCIAL CONSTRAINTS ON DEMAND MANAGEMENT.
>WITH FIXED EXCHANGE RATES THERE ARE CONSTRAINTS ON
>DEMAND MANAGEMENT.  I KNOW THAT YOU FEEL IMCU
>SOLVES THIS ISSUE, BUT THAT'S A DIFFERENT POINT.
>POINT HERE IS YOUR CONTENTION THAT I THINK FLOATING
>FX WILL MAINTAIN FULL EMPLOYMENT BECAUSE MARKETS WILL
>CLEAR.  THAT'S NOT IT.  FLOATING FX CAN MAINTAIN FULL
>EMPLOYMENT BECAUSE DEMAND MANAGEMENT IS UNRESTRICTEDBY
>CONVERTIBILITY WITH FIXED FX.
>
Again thia lain of yours is just not compatible with the essential properties
of interest and  money (ch 17 of the GT) which assures that instantaneously
flexible relative prices (including exchange rates) can not assure full
employment---

GOES WITHOUT SAYING!
TO COMPLETE MY ABOVE STATEMENT,
WITH A FLOATING EXCHANGE RATE THE GOVT
CAN ALSO ALWAYS HIRE DIRECTLY OR FUND THE
DIRECT HIRING OF ANYONE WILLING AND ABLE
TO WORK WITHOUT REGARD TO GOVT 'FINANCE.'

WITH A FIXED EXCHANGE RATE GOVT
CAN'T ALWAYS DO THAT WITHOUT 'CUTTING BACK'
ELSWHERE WHICH LIKELY PUTS SOMEONE ELSE OUT OF
WORK.

W


Paul Davidson