tag:blogger.com,1999:blog-4900303239154048192.post2317800166550521022..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Critique of Public Investment Based on Another Misapplication of Ricardian EquivalenceUnknownnoreply@blogger.comBlogger5125tag:blogger.com,1999:blog-4900303239154048192.post-30760531941990769092011-03-11T15:45:30.711-05:002011-03-11T15:45:30.711-05:00Ricardian Equivalence and Keynesian stuff are both...Ricardian Equivalence and Keynesian stuff are both dependent upon a model in which money has intrinsic value; where money is static and "scarce". When will the economics profession get off of this merry go round???? Keynesian money theory is at least consistent within that sort of frame. Ricardian Equivalence is pure pig shit because it does no account for slack demand and underutilized real resources that then become more fully utilized after the fact. If money is injected by virtue of fiscal policy AT THE BOTTOM of the economy during periods of low interest rates (slack demand) and then paid back when the money is more scarce (everyone wants to invest) then the Keynes theory works even in an intrinsic money system. The fact that we do not have the handcuffs of intrinsic money totally destroys any validity of "Ricardian Equivalence" and aids the Keynesian concept. The money need not be prepaid if it is created money. There is no interest expense. Such a thing (QE2) is moderately inflationary and absolves old debt to boot. Please address the issue. and stop tap dancing around.truckerhttps://www.blogger.com/profile/04972946226342199096noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-58281384030583971862011-03-11T13:03:04.388-05:002011-03-11T13:03:04.388-05:00Am I the one really confused here? This seems to b...Am I the one really confused here? This seems to be a debate about the relationship between events at a discrete time "t" and events at a discrete time "t+1". Meanwhile, social production spins merrily along on its axis of a continuum. <br /><br />How do we know that digging and filling holes or burying bottles filled with banknotes is less productive than, say, building a rail line from Birmingham to Manchester? Is the standard of value being used one of subjective utility or of capital accumulation?<br /><br />The word "employment", which appeared several times in Paul Krugman's post doesn't appear at all in Nick's. So, is this debate about employment and policies to increase it or is it about abstract "bangs" that may be bigger or smaller? If the issue is really about employment, aren't there more urgent and realistic questions that need to be addressed than Ricardian Equivalence?Sandwichmanhttps://www.blogger.com/profile/11159060882083015637noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-25203703299983664432011-03-11T01:29:26.019-05:002011-03-11T01:29:26.019-05:00Nick hit the nail on the head with this one. His p...Nick <a href="http://worthwhile.typepad.com/worthwhile_canadian_initi/2011/03/ricardian-confusions-squared.html" rel="nofollow">hit the nail on the head</a> with this one. His post on this topic is a must read.Jameshttps://www.blogger.com/profile/15243567377599238583noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-36366986774241770902011-03-11T00:18:30.550-05:002011-03-11T00:18:30.550-05:00I think you are wrong on this one: http://worthwhi...I think you are wrong on this one: http://worthwhile.typepad.com/worthwhile_canadian_initi/2011/03/ricardian-confusions-squared.htmlNick Rowehttps://www.blogger.com/profile/04982579343160429422noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-42947216816071619252011-03-10T12:10:56.895-05:002011-03-10T12:10:56.895-05:00Many of your neighbors are Yankee fans--but I woul...Many of your neighbors are Yankee fans--but I would wager they don't thrill to paying an extra $1 for a bagel in midtown because that money subsidizes Their Favorite Team.<br /><br />(That's speaking as a Devils fan who is still paying for the old arena, let alone the new one, and wishes New York would <em>take back the Giants and Jets</em>, instead of leaving us with the bill for [again] their old and new stadia.)Ken Houghtonhttps://www.blogger.com/profile/01440837287933536370noreply@blogger.com