But Keynes was not writing about open economies.
On Tue, Aug 20, 2002 at 02:14:01PM -0700, Devine, James wrote: > > But one of the points of Keynesian economics is that if the economy is in > depression, there doesn't have to be a pre-existing pool of savings > available to borrow. The fiscal expansion should raise incomes, which raise > consumer demand -- and saving, so the program can largely pay for itself. If > investment is also stimulated, that raises income further, and saving. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
