Re: Putting Chartalism In Its Place?

[Bill Mitchell <ecwfm@xxxxxxxxxxxxxxxxxxxxxxx>]

Indeed Gunnar, and then we get onto how divided we are when it comes
to thinking of Federal budgets. the majority of pkt'ers are thoroughly orthodox
(neo-liberal) when it comes to that topic.

best wishes
bill

>  a majority of pkt's probably don't even relate sv to profits. so what that
> > does tell us?
>
> Comment:
>
> It tells us that "a majority of pkts"
>
> (a) agree with Paul A. Samuelson:
>
> "It is quite clear that in the real world net revenue is not zero for all
> firms, nor is it tending towards zero.  This is true under pure competition
> as well as impure competition.  It is clear that this residuum must be "due"
> to SOMETHING, and it may be labeled by any name we please (rent to
> institutional advantage, etc.)." (_Foundations of Economic Analysis_,
> Atheneum, New York, 1979, p. 87);
>
> (b) have overcome the problem of which Joseph A. Schumpeter wrote:
>
> "I have not been able to convince myself, for example, that such questions
> as the source of interest [on Production Credit and/or Profits - insert GT]
> are either unimportant or uninteresting.  They could be made so, at all
> events, only by the fault of the author." (Preface to _The Theory of
> Economic Development_, Oxfored University Press, 1961, p. x); and
>
> (c) keep their fingers crossed that the profession's decades-long disregard
> of this SOMETHING will not prove to be the root cause of the sorry state of
> modern monetary theory which, by Goodhart's reckoning a few years back, is
> "less satisfactory" than that to which Keynes and Robertson had advanced it
> by the early 1930s.

------

William F. Mitchell
Professor of Economics
Director, Centre of Full Employment and Equity
University of Newcastle
New South Wales, Australia
E-mail: ecwfm@xxxxxxxxxxxxxxxxxxxxxxx
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