Re: Krugman on the Deflation quagmire

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

Re. the following;

...in Vol XXVII, Keynes was more explicit and called for two-thirds to 3/4
of total investment in the economy to be influenced by public or semi-public
bodies guided by private exchange.

Comment:

My fellow Gang8 members Geoffrey Gardiner and Chris Meakin advise that
Keynes' intellectual fingermarks were on a bill submitted to (passed by?)
Parliament in 1946 which envisaged QUALITATIVE credit controls.

In the event, little or nothing came of it.

And, considering that QUANTITATIVE credit controls have become anathema in
the post-Bretton Woods era, it will take a miracle - or catastrophe - to
awaken the world's policy-makers to the need for QUALITATIVE controls
whereby new credit can be channeled into private and public sector
investment projects.

Gunnar


----- Original Message -----
From: "Esteban Perez" <eperez@xxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>; <pdavidso@xxxxxxx>
Sent: Friday, May 30, 2003 3:44 PM
Subject: Re: Krugman on the Deflation quagmire


> Keynes called the  "socialization of investment", meaning not
> that the State should own the means of production but rather the
government
> should use all sort of "devices by which public authority will cooperate
with
> private initiatives" to increase the productive facilities that are the
> backbone of our economy ― even if this means running perpetual deficit
capital
> account spending.
> ―--------------------------------------------------------------------
> Is it "should use all sort of devices" or "need not exclude...devices"?.
After all in Vol XXVII, Keynes was more explicit and called for two-thirds
to 3/4 of total investment in the economy to be influenced by public or
semi-public bodies guided by private exchange. In Vol. XXI there is always
the national investment board as a possibe socialization of investment and
in his proposal for a Clearing Union (Second draft) there is the
international investment board Vol. XXV p.60. It's more than just
cooperation.
>
> E. Perez
> and stated
>
>
>