tag:blogger.com,1999:blog-7658874470833994309.post5152032591529941509..comments2023-10-20T10:46:21.208+01:00Comments on Knowing and Making: Accounting identities are not behavioural rulesLeigh Caldwellhttp://www.blogger.com/profile/16150868700502562500noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7658874470833994309.post-73544330108861152522010-04-07T09:43:00.932+01:002010-04-07T09:43:00.932+01:00Yes - loose monetary policy (both price and access...Yes - loose monetary policy (both price and access to finance) would help reduce the deficit, insofar as it encourages firms to invest.<br />My concern, thought is that capital spending responds only a little to interest rates in the narrow sense, as it is much more dependent upon animal spirits.<br />Where monetary policy might work is in influencing the latter. A long period of loose monetary chrishttp://stumblingandmumbling.typepad.com/noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-91368634151013460742010-04-06T19:32:18.136+01:002010-04-06T19:32:18.136+01:00Buen Post Sobre El Decline Estructural Economico.Buen Post Sobre El Decline Estructural Economico.Juegosguaysguayshttp://juegosguaysguays-francisco.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-66672458841113771642010-04-06T13:31:29.079+01:002010-04-06T13:31:29.079+01:00Fair enough Chris. I must admit that, by the time ...Fair enough Chris. I must admit that, by the time I finished writing the post, I realised that was essentially what you meant.<br /><br />However, do you agree that greater monetary stimulus would be an alternative way out of the situation, if the government didn't have other policy-based reasons to run a deficit?<br /><br />Or equivalently, do you think there is any other way in which the Leigh Caldwellhttps://www.blogger.com/profile/16150868700502562500noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-13197846770491016702010-04-06T13:22:49.577+01:002010-04-06T13:22:49.577+01:00I don't think we differ here.
I am NOT saying...I don't think we differ here. <br />I am NOT saying that accounting identities are descriptions of behaviour. In principle, it could be that the corporate sector is running a surplus because government is borrowing. It just seems to me more plausible - and more consistent with other facts (eg low interest rates) that the causality is the other way round.<br />You are certainly correct that chrishttp://stumblingandmumbling.typepad.com/noreply@blogger.comtag:blogger.com,1999:blog-7658874470833994309.post-9618054186888706622010-04-06T05:54:30.663+01:002010-04-06T05:54:30.663+01:00I agree with your headline. However, I am not sure...I agree with your headline. However, I am not sure about your interpretation of what Dillow is saying.<br /><br />Dillow: "The pessimistic reading is that the corporate sector’s reluctance to invest is not merely a temporary cyclical artefact but rather a sign of a structural dearth of investment opportunities;"<br /><br />That may be so, in a sense, but puts the matter strangely. ThereMinnoreply@blogger.com