> > I refer here not only to retaliations and beggar-thy-neighbor
>> policies (to which Mark was perhaps averring) but the possibility
>> that by limiting the supply of dollars abroad through tariffs and the
>> other import restrictions meant to protect declining industries--and
>> this seems to be what Godley is proposing--the dollar's value will
>> probably increase and thus put added pressure on US exports.
>
>Except the paper says "_In the very last resort_, the United States should
>not forget that nondiscriminatory measures to control imports . . . are
>permitted under Article 12 of the successor to GATT." (Whether you believe
>such measures can be non-discriminatory is another matter.) The authors
>argue that the best case scenario is that the U.S.' private financial
>balance wouldn't revert, and growth would continue at about 3%, in which
>case, Indonesian textile workers are about where they are now. As others
>have pointed out, the authors' emphasis here and elsewhere is on fiscal and
>tax policy needed to sustain growth. They also suggest that other countries
>could engage in some coordinated reflation, were there but world enough and
>institutions.
>
>Would like the Nelson, Ostry, and Eisner refs.
The first two wrote a book titled something like techno nationalism;
Eisner wrote The Great Deficit Scares. Both books for the non
economist--that's me.
RB
