>>>>>>>>>At 5 pm on Friday Chuck said:
>>>>>>>>>
>>>>>>>>>>I heard that the Fed is putting interest rates up. Didn't know
>>>>>>>>>>who said it, but one rumour is enough to keep us going for
>>>>>>>>>>another day
>>>>>>>>>
>>>>>>>>whatdyamean. i also heard that Clinton changed toothpaste brands
>>>>>>>>>yesterday. Maybe he knew something we didn't then?
>>>>>>>>>
>>>>>>>>>later
>>>>>>>>>
>>>>>>>>>bobbie
>>>>>>>>>univ. of washington
>>>>>>>>
>>>>>>>>yeh i heard it to.
>>>>>>>>
>>>>>>>>randy
>>>>>>>>uni of california
>>>>>>>
>>>>>>>he used to use stripe non-flouride, but now since he has been
>>>>>listening to bartok, he has got sophisticated and evidently went to
>>>>>>>that new gee-whiz brand.
>>>>>>>
>>>>>>>hope this helps
>>>>>>>
>>>>>>>Cindy Lu
>>>>>>>Federal Reserve
>>>>>>>Chicago
>>>>>>
>>>>>hey, cindy
>>>>>got any news on those rates?
>>>>>
>>>>>Danny Jones Junior III
>>>>>Americans for Truth
>>>>
>>>Dear Pen-L
>>>
>>>i am from australia and i would like to talk about global american
>>>imperialism.
>>>
>>>Kind Regards
>>>Bill
>
>Hey man, chuck here. Which state of the US of A is australia in. Haven't heard
>of that one?
>
>Chuck
>American Foundation for World Studies
>Uni of Mass.
and then micheal had to come along and put a dampener on the conversation. but
i guess we will all find out everything ...surely the issues will burn for
longer than the next 24 hours. so now the philistines move in and take over
pen-l.
well alex g'day mate. what do you want to talk about. Californian electoral
hopes for clinton. where's that anyway?
anyway at the moment i am working on my phillips curve book and several papers
that arise. i am going to florence to talk about european unemployment in
november. the prevailing wisdom over there (exemplified by the LSE-Oxford mafia
- try reading Layard, nickell and jackman) emphasises supply side factors -
still. innappropriate benefit systems, excess tax rates, real wage expectations
that don't match trends in productivity....and they couch all stuff in terms of
of so-called hysteretic systems (which make them sound different to the banal
but related new classical nonsense). and they do have certain concessions for
AD deficiency.
my line is that there has never been a time when governments couldn't decrease
unemployment with fiscal and monetary policy if they tried. so why is un so
high? b/c everyone has been persuaded that inflation is an enemy and so
governments have deliberately allowed un to remain high. the persistence is
nothing more than the longer term effects of deficient demand. and growth
bursts haven't been long enough to fully absorb the pool.
so why is inflation the evil? it isn't. it is a convenient tool used by the
bosses to keep a RAU up at desirable levels. profits might not be as high as
they could be if full capacity was the norm, but the hegemony of the cappos is
less under threat and the un. has allowed them to systematically destroy the
unions and turn them into a sickenly weak divided self-destructive movement
unable to capture the needs and spirit of the women and youth.
my own work shows how incomes policy clearly controls inflation in times when
growth is above (the pitiful) average. in oz, IPs work. when they have been
relaxed or modified to resemble free market bargaining, wages growth has been
way above the IP periods. one question for europe and that little joint to the
north east of us is why do IPs work here and not there?
i am also pushing this line that governments have a strong role to play. the
problem we have talked about before and i have been sort of out there as usual
not in the mainstream of pen-l.
too little AD - poor jobs performance.
too much - the environment dies.
the world can't cope with AD levels common in OZ or the USA.
so what can we do. we used to teach expenditure-switching strategies to get us
out of trade deficit/unempl dilemmas. well in a way that is what i say again.
the 1980s period of new classicana left us with a legacy of a rising rump of
RAU. people who are dispossessed. it also left us with a lot of privatised
public assets, lower public spending and lower taxes.
we need more AD to get this rump offering value. but we can't have it in the
private (polluting) sector.
the challenge for government policy is to create value among the bottom 20
percent. get them generating value in community-based green employment.
this means we abandon the gainful work classification. redefine
unemployment-employment.
i don't go for shawgi type revolutions anymore. the time is passed for that. we
have to sneak up on them. but meanwhile the world is dying from pollution. the
sneaking up has to start now.
so that is the stuff that i am throwing the hardest econometrics at right now.
it is looking good from my angle and will come out in print early in 1998
(edward elgar).
kind regards
bill
--
#### ## William F. Mitchell
####### #### Head of Economics Department
################# University of Newcastle
#################### New South Wales, Australia
###################* E-mail: [EMAIL PROTECTED]
################### Phone: +61 49 215065
##### ## ### +61 49 215027
Fax: +61 49 216919
## http://econ-www.newcastle.edu.au/~bill/billyhp.html
"only when the last tree has died and the last river has been poisoned
and the last fish been caught will we realise we cannot eat money."
(Cree Indian saying...circa 1909)
