Re: Article in the Chronicle of Higher Education

[pdavidso <pdavidso@xxxxxxx>]

>===== Original Message From Warren Mosler <mosler@xxxxxxxxxxxxxx> =====
> >
>> >Why?  In 'theory' that desire to net save can be 0
>> or
>> >even negative.

>Why there is a positive desire to save financial
>assets is certainly an interesting question, and
>one of many taht follow.  But my above opening
>statment is true even if that desire is 0 or negative,
>right?

No.  If there desire is zero then Say's Law follows, the economy is always at
full employment, and there is no money (as we know it) in the system merely a
numeraire.

If the  private sector has a negative desire, then unless you assume the
goverment runs a surplus each period, the system will explode.

Paul

Paul Davidson
Editor, Journal of Post Keynesian Economics
University of Tennessee
SMC 503
Knoxville, Tennessee 37996-0550
phone # (561)369-1951; fax #(561)369-1951;
email pdavidson@xxxxxxx
http://econ.bus.utk.edu/davidsonextra/Davidson.html