At 11:20 AM 12/12/00 -0600, you wrote:
>"Krugman on the Liquidity Trap: Why Inflation Won't Bring Recovery In Japan,"
>Jerome Levy Economics Institute, Working Paper No. 298, March 2000
>Jan. A. Kregel
>
>Abstract
>
>Paul Krugman has argued that Japan is in a liquidity trap and that it can
>recover only if the central bank there follows a policy of "credible
>inflation."
>This paper argues that Krugman's proposal, which is similar to what Fisher
>proposed during the depression, is based on a different interpretation of the
>liquidity trap from that proposed by Keynes and as a result his policy
>recommendations can result in neither the elimination of the trap nor in
>Japan's
>economic recovery.
I was a bit disappointed with this article, which seems obsessively
concerned with "what Keynes really said." Sometimes the Keynesians can be
more fundamentalist in their method than the Marxists.
I doubt that "credible inflation" will help Japan, but the important thing
is not _who_ developed a theory that says so but _why_ this is so.
Jim Devine [EMAIL PROTECTED] & http://bellarmine.lmu.edu/~jdevine
