Re: Re:Much ado about nothing?

--- Beth Webster <e.webster@unimelb.edu.au> wrote:
> Dear Peter
>
> The strange thing is that there is general concern
> when 'demand is too
> high' but not when the source is exports and rarely
> when the source is
> investment.

Good point.

 Of course, if one is concerned purely
> with overheating the
> goods market (and by implication the labour markets
> that service them),
> then there is no reason to distinguish between
> exports, investment or
> domestic consumption.

Right, unless one feels 'investment' ultimtely lowers
costs, increases efficiency, etc. which by definition
I supposed is the case?

Warren Mosler

The heart of the fear of 'too
> much demand' is, I
> believe, the puritanical notion that immediate
> gratification is bad and
> that 'saving' by spending on investment goods or
> earning foreign exchange
> is OK.

>
>
> kind regards
>
> Beth
>
>
> At 04:07 PM 3/02/2003 +1100, Peter Kriesler wrote:
>
>
> >In response to both Beth and Bill, I think that
> there is a role for
> >government borrowing, that is when there is some
> concern over the
> > level of aggregate demand being too high. In
> other words, when the economy
> >is near full employment, or when demand inflation
> of the balance of trade
> >deficit
> >are concerns, then governments may borrow to reduce
> demand pressures. Of
> >course, taxes on high incomes or elsewhere can
> probably do the same thing
> >more efficiently, but that may be harder to sell
> politicly!
> >
> >
> >
> >Peter Kriesler
> >School of Economics
> >UNSW
> >Sydney 2052
> >http://economics.web.unsw.edu.au/people/pkriesler/
> >
> >_______________________________________________
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>
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Received on Mon Feb 3 18:42:47 2003