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

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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