Re: financing, funding, etc

[Bill Mitchell <ecwfm@xxxxxxxxxxxxxxxxxxxxxxx>]

Dear Paul


> PAUL: > Or are you saying that if
> >> the central bank moves in
> >> and buys up all the equities offered to sale at the
> >> last price before the
> >> bubble burst, then it is monetary policy tha has
> >> provided the iquidity
> >> desired.
> >
> WARREN: >I'd call that fiscal policy, looking at it
> >functionally, even though the cb does it.
> >A loan from the cb would be closer to monetary
> >policy in my book, but the line is blurred under
> >close examination.
>
>
> PAUL: But BILL MITCHELL insisted it is not fiscal policy it is monetary
> policy and
> fiscal policy has nothing to do with anything!

I actually didn't comment on your proposition.
I also never said FP has nothing to do with anything.
Why would you want to just invent that attribution?
I had decided to stop writing on this theme here because we essentially
agree and the
distinctions are mostly in terminology. I prefer not to use your
distinction between funding and
financing. Functionally, I have no issue with it. Tactically, I do.

> > If the latter is what you are saying, then
> >> why don't you say it?
>
> Warren we tend to agree on the mechanism although we may use different
> terminology.  I can not say the same for Bill's tortured taxonomy.

Why try to create division that is not there? My taxonomy was just
different (as above)
to your own. But then is your version of the world the benchmark Paul? I
hope not.

best wishes
bill