Re: What is Creditary Economics?

["Esteban Perez" <eperez@xxxxxxxxxxxx>]

The point is that according to Keynes savings (aggregate) is a residual.

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>>> "Forstater, Mathew" <ForstaterM@xxxxxxxx> 04/15/03 03:35pm >>>
Gunnar - Doesn't Keynes say in the General Theory that if investment
determines savings, and if low interest rates stimulate investment and
high interest rates deter investment, then we get a relationship between
interest rates and savings that is the exact opposite of the loanable
funds model? Mat

-----Original Message-----
From: Gunnar Tomasson [mailto:gunnar.tomasson@xxxxxxxxxxx]
Sent: Tuesday, April 15, 2003 12:22 PM
To: Warren Mosler; pkt@xxxxxxxxxxxxxxxx
Cc: Gang8
Subject: Re: What is Creditary Economics?

Warren:

The point at issue is Economics 101.

For Interest denotes (a) the PRICE of Credit, and (b) the RETURN on
Savings.

Gunnar



----- Original Message -----
From: "Warren Mosler" <mosler@xxxxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Sent: Tuesday, April 15, 2003 8:50 AM
Subject: Re: What is Creditary Economics?


>
>
> > >Surely, mainstream, monetarist, and post Keynesian
> > scholars all agree (a)
> > >that raising interest rates will increase "savings"
> > and reduce aggregate
> > >demand,
>
>
>
> > Not for this Post Keynesian.
>
> Me neither.  Nor anyone who thinks it through who can
> tie their own shoes...
>
>
> warren
>
> >
> > Paul
> >
> >
>
>
> =====
> Warren Mosler, www.mosler.org
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