[Marxism] functional finance

michael perelman michael.perelman3 at gmail.com
Wed Aug 17 18:12:06 MDT 2011

It seems that he is merely doubting the existence of "shovel ready" projects.

On Mon, Aug 15, 2011 at 3:43 PM, Richard Sutch <richard.sutch at ucr.edu> wrote:
> About fiscal policy Keynes  had this to say in 1931:
> Theoretically, it seems to me, there is everything to be said for action
> along these lines. For the government can borrow cheaply and need not be
> deterred by overnice calculations as to the prospective return. ...  The
> difficulty about government programmes seems to me to be essentially a
> practical one. It is not easy to devise at short notice schemes which are
> wisely and efficiently conceived and which can be put rapidly into operation
> on a really large scale. Thus I applaud the idea and only hesitate to depend
> too much in practice on this method alone unaided by others.[1]
> My sense is that Keynes was thinking of fiscal vrs monetary policy as
> alternative devices to prevent or minimize the size of recessions, not in
> this passage about deficit spending to bring recovery from a deep
> long-lasting depression.

Michael Perelman
Economics Department
California State University
Chico, CA

530 898 5321
fax 530 898 5901

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