_____________________________
From: Carrol Cox <[email protected]>
Sent: Thursday, February 25, 2016 5:56 PM
Subject: Re: [Pen-l] Will the helicopter drops of money be able to prevent
the economic crisis from looming large?
To: 'Progressive Economics' <[email protected]>
Perhaps the clock has run out on Luxemburg's either/or and barbarism is here
for good.
Carrol
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"If something cannot go on forever, it must stop." Herbert Stein
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C:\ \0c Collect Old\9A OLD Docs\0 x\7 Lists\~2Saved2007\00 C & Y\Yoshie\0
Raw Saves\Posts 2001a.doc
-----Original Message-----
From: [email protected] [
mailto:[email protected].
edu] On Behalf Of Mark Wain
Sent: Thursday, February 25, 2016 4:28 PM
To: [email protected]
Subject: [Pen-l] Will the helicopter drops of money be able to prevent the
economic crisis from looming large?
A worker says: “Store manager watches sale every minute, with a worrying
face. He said, I have a wife and 3 school ages children. We have hundred
applicants applying job each day. I like to look around what others are
doing; only newly hired workers show happy faces.”
This is big news. The unemployed get bigger in number every day now. A
reader commented on the recent article by economist Martin Wolf ：“No
simple solutions for the global economic imbalances of today exist, only
palliatives” (Financial Times) and the reader said, “It seems strange that
demand is lacking when half the world appears to be living in poverty?” I
wrote a reply by saying: “As capital controls the economy, labor power can
only serve as hired slaves. Demand falls with over-production, poverty
carries the day.”
In the article the author writes in the beginning: “The world economy is
slowing, both structurally and cyclically. How might policy respond? With
desperate improvisations, no doubt. Negative interest rates have already
moved from the unthinkable to reality (see charts). The next step is likely
to include fiscal expansion. Indeed, this is what the OECD, long an
enthusiast for fiscal austerity, recommends in its <Interim Economic Outlook
< http://www.oecd.org/eco/outlook/economicoutlook.htm> >. But that is
unlikely to be the end. With fiscal expansion might go direct monetary
support, including the most radical policy of all: the< “helicopter drops”
< http://willembuiter.com/helifinal.pdf> > of money recommended by the late
Milton Friedman.” - he said: “Let us suppose now that one day a helicopter
flies over this community and drops an additional $1000 in bills from the
sky, .... Let us suppose further that everyone is convinced that this is a
unique event which will never be repeated,” (Friedman 1969, pp 4-5).
<
http://www.ft.com/cms/s/2/9b3c71f8-d97f-11e5-a72f-1e7744c66818.html#ixzz41D8
yHsey >
Nothing the corporate macroeconomists and state policy-makers have tried so
far is working; will the helicopter drops of money be able to prevent the
economic crisis from looming large?
Mark
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