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It seems that he is merely doubting the existence of "shovel ready" projects. On Mon, Aug 15, 2011 at 3:43 PM, Richard Sutch <richard.su...@ucr.edu> wrote: > > > About fiscal policy Keynes had this to say in 1931: > > Theoretically, it seems to me, there is everything to be said for action > along these lines. For the government can borrow cheaply and need not be > deterred by overnice calculations as to the prospective return. ... The > difficulty about government programmes seems to me to be essentially a > practical one. It is not easy to devise at short notice schemes which are > wisely and efficiently conceived and which can be put rapidly into operation > on a really large scale. Thus I applaud the idea and only hesitate to depend > too much in practice on this method alone unaided by others.[1] > > My sense is that Keynes was thinking of fiscal vrs monetary policy as > alternative devices to prevent or minimize the size of recessions, not in > this passage about deficit spending to bring recovery from a deep > long-lasting depression. -- Michael Perelman Economics Department California State University Chico, CA 95929 530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com ________________________________________________ Send list submissions to: Marxism@greenhouse.economics.utah.edu Set your options at: http://greenhouse.economics.utah.edu/mailman/options/marxism/archive%40mail-archive.com
