Re: What went right?

[Rosser Jr, John Barkley]

Doug,
     Hmmm, must have missed those questions on pkt.  
Actually some of the newer open economy ISLM models have 
the main stimulus of an expansionary monetary policy, or of 
any policy such as reducing budget deficits without a 
monetary tightening that leads to lower interest rates 
(remember Alan Greenspan sitting between Hillary and Tipper 
when Bill proposed those tax increases much to Republican 
horror?) as operating through an export stimulus arising 
from a depreciation of the currency.  
     Of course, now that the US dollar is surging, what 
does this mean for the export stimulus?  For that matter, 
why is it that the stock market is so easily shaking off 
the lousy profit reports out of Compaq, etc.?
Barkley Rosser
On Thu, 12 Mar 1998 16:02:50 -0500 Doug Henwood 
<[EMAIL PROTECTED]> wrote:

> Rosser Jr, John Barkley wrote:
> 
> >Post Keynesians have a harder time
> >explaining "why things have gone right" (probably Michael
> >P. should introduce this thread over on pkt, just for
> >kicks, :-)).
> 
> I've tried that twice now, and the closest approximation of a credible
> answer I've gotten was Paul Davidson's - that it's exports. To the retort
> that imports have grown more rapidly than exports, Davidson rightly points
> out that it doesn't necessarily matter: if exports stimulate income growth,
> and income growth increases import demand, then of course M will grow along
> with X. This is a point that worries me about EPI's trade work; do they
> take this into account?
> 
> By the way, does anyone know anything about the relative profitability of
> exports vs. imports?
> 
> Doug
> 
> 
> 

-- 
Rosser Jr, John Barkley
[EMAIL PROTECTED]