Re: Fw: [gang8] Fw: RATIONAL EXPECTATIONS

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

Paul:

 

Re: the following:

 

Right Gunnar! The way to go is for reduction of aggregate global demand and a world-wide depression!!   Right?

 

Comment:

 

Today's world economic situation is fraught with danger - the onset of world-wide depression is one of them. 

 

But the problem did not arise overnight.  Instead, it reflects aggregated-demand sustaining monetary inflation of the post-Bretton Woods era which, by now, has lost its potency. 

 

And, while unforeseen by the great majority of contemporary economists, this very danger was underscored by Hayek's title of his IEA 1972/1978 booklet - A Tiger by the Tail - The Keynesian legacy of inflation. 

 

A dose of aggregate global demand stimulation may prolong the world economy's ride on the tiger's back, making a future dismounting that more unpleasant. 

 

In other words, world economic policy makers have painted themselves - and the rest of us - into a corner over the past three decades.

 

Gunnar

 

 

----- Original Message -----

From: paul davidson

To: Gunnar Tomasson

Cc: pkt@xxxxxxxxxxxxxxxx

Sent: Wednesday, May 14, 2003 11:24 AM

Subject: Re: Fw: [gang8] Fw: RATIONAL EXPECTATIONS

At 09:19 PM 5/13/03 , you wrote:

FYI.
 
Gunnar
 
----- Original Message -----
From: Gunnar Tomasson
To: gang8@xxxxxxxxxxxxxxx
Sent: Tuesday, May 13, 2003 8:57 PM
Subject: Re: [gang8] Fw: RATIONAL EXPECTATIONS

Henry:
 
"Usefulness" is in the eye of the beholder.
 
Globalization is Keynes' bastard child - and, when the bastard does not perform as it should, a few weeks/months ago, Paul Davidson suggested that MORE injection of U.S. dollar demand into the world economy was the way to go.
 
There is no method in that madness.
 

.

Right Gunnar! The way to go is for reduction of aggregate global demand and a world-wide depression!!   Right?