From: Allin Cottrell (cottrell@wfu.edu)
Date: Fri Nov 19 2004 - 14:08:18 EST
On Fri, 19 Nov 2004, Rakesh Bhandari wrote: > At 10:04 AM -0500 11/19/04, Fred Moseley wrote: >> >> >> I have the same question: what grounds do we have for supposing that >> the price/labor-time ratio for that particular basket of commodities >> determines the MELT? > > First, note that I am specifying a determinant for quantity of money > in circulation. Your specification is just: the quantity of money in circulation is determined by the policy of the Federal Reserve system, which is not exactly news to anyone. > For example, Greenspan will now drain liquidity from the economy > in order to bring the dollar price of the basket of commodities > down. If that happens to imply CPI deflation, I don't believe it. Allin
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