Comment on the paper by A. Bhaduri and E. Matzner

Steindl, Josef

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Document type:: Works

Collection:: Josef Steindl Collection

Title:: Comment on the paper by A. Bhaduri and E. Matzner

Author:: Steindl, Josef

Scope:: Typoskript, 4 Blätter

Year of publication:: 1990

Language:: English

Description:: Altogether our world seems to be dominated not only by finance, but more specifically by short run speculation. Autonomous economic policies are called in question by lack of controll over interest and exchange rates and over capital movements. (Auszug, S.1)

Subject:: Beschäftigungspolitik Vollbeschäftigung Steuerpolitik Tobin-Steuer Wechselkurspolitik Internationale Kapitalbewegung Internationale Wirtschaftspolitik Internationale Finanzpolitik Neokeynesianismus

Related work:: Bhaduri, Amit and Matzner, Egon: Relaxing the international constraints on full employment. In: Banca Nazionale del Lavoro Quarterly Review, 1990, Vol 43, Issue 172, S. 49-62 Steindl, Josef: Relaxing the international constraints on full employment. A comment. In: Banca Nazionale del Lavoro Quarterly Review, 1990, Vol 43, Issue 172, S. 63-67

Topic:: Economic policy

JEL Classification:: J21 [Labor Force and Employment, Size, and Structure] F38 [International Financial Policy: Financial Transactions Tax, Capital Controls]

Shelfmark:: S/M.77.3

Access:: Free access

ourselves that the Keynes plan in itself does not solve this problem of capital movementse - the payments union would not work if they were not controlled ( as Kalecki and Schuhmacher argued in the Oxford Bulletin of Statistics in 1944). In fact this problem is nowadays immeasurably greater than it was then because of the enormous mass of mobile financial capital and the perfection of the means of transferring it. In principle, however, cooperative solutions exist for this problem, too. If the country which looses the flight capital and the country which receives it would cooperate they could avoid most destabilising and harmful transfers. This is not completely utopian in so far as the influx of funds also constitutes a problem . Politics, however, are not governed by good sense and fairness; otherwise governments would know that a structural surplus creates permanent trouble in the long run unless the country is willing to buy up the rest of the world. In the meantime, however, these governments are quite happy with their foreign balance surplusses, for, if they would not have them their budget deficit would have to be just so much greater in order to maintain the same volume of effective demand. I have started these comments, and I shall also end them, by pointing out that we are in a world of transition which changes very quickly before our eyes. This fully justifies us in discussing policies and plans even if they appear to be unrealistic at the moment because they need not

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