Jim is exactly correct, as John Law's experiment in France proved, but this kind of growth is difficult to sustain relative to a more balanced form of growth based on normal incomes. Of course, under capitalism stability is only relative.
Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901 michaelperelman.wordpress.com -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Jim Devine Sent: Thursday, September 18, 2008 10:32 AM To: Progressive Economics Subject: Re: [Pen-l] Re: Reality catches up with catastrophists Michael: >> Fictitious values can create real wealth. I can slice and dice bond. Sell off parts of it to >> people who are willing to pay because they can ensure the bond from someone else. I pocket >> some money for my efforts, then go out and buy a yacht. Sabri: > But this is mostly about creation of money, irrespective of whether > any income is generated through the creation of debt or not. if the supply of goods and services isn't inelastic, an increase in the amount of money (or rather, money times velocity) would increase real production. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
