Re: imcu questions

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

Re. the following:

> >And, in technical terms, what does THAT mean?
>
> >It means that newly created purchasing power placed in the hands of the
> >unemployed will secure for them a piece of the pie at the cost of those
who
> >provided factor inputs to the baking of the pie - in other words, it is
> >INCOME REDISTRIBUTION by monetary/govt. finance means.
>
> Surely this is assuming that the resources required to satisfy
> the newly created purchasing power are already employed?

Comment:

No.  The argument is analogous to the more familiar proposition that
doubling everybody's nominal purchasing power overnight doubles the price
level - the level of factor employment does not enter into the picture.

Gunnar



----- Original Message -----
From: "Bruce McFarling" <ecbm@xxxxxxxxxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Sent: Tuesday, June 04, 2002 6:26 AM
Subject: Re: imcu questions