On Sat, Apr 21, 2012 at 4:12 AM, robert mckee <[email protected]> wrote: > http://thenextrecession.wordpress.com/2012/04/21/paul-krugman-steve-keen-and-the-mysticism-of-keynesian-economics/ > > So what are the issues at debate? The first is whether, in a modern > capitalist economy, money is created endogenously i.e. demand for money > drives its supply, rather than exogenously, namely by the printing or > absorption of money by a central bank. The second is whether the expansion > of debt, particularly private credit, adds to demand in an economy, such > that it can get way out of sync with the expansion of the production of > things and services; and whether this is key to the capitalist crisis. And > third, whether it is the inherent instability of the financial system that > is the kernel of crisis and not just the lack of ‘effective demand’ as > orthodox Keynesians argue.
I fail to see why these two perspectives are mutually exclusive. Why can't we have a crisis caused by financial speculation, one of whose consequences is collapse in demand and a suppression of the animal spirits that drive growth? -raghu. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
