Jim D does yeoman service on the question shown in part below, but:
> In response to Bill's question about international finance, I wrote: >>I
> think the problem here is there's a confusion of the supplies of money and
> loanable funds, which help to determine the interest rate, and the supply
> of currency, which helps to determine the exchange rate. << .........
>
> Bill writes: >What is the difference between the supplies (?) of money and
> loanable funds? Are there supplies of money which are not loanable? Aside
> from cash under the mattress, what money is not loanable? If an importer
> uses her bank account (presumably, pace Post Keynesians, debt, not
> currency) for the transaction, there is no currency involved.< .......
Can he or someone else comment on the origin of debt as a corporate asset;
the concept seems like such crooked thinking to me. I can't imagine
average individuals transforming their debts into negotiables.
Are governments doing the same thing in bilateral dealings?
valis
