[OPE-L:1165] Re: monetary inflows versus capital accumulation

From: Allin Cottrell (cottrell@ricardo.ecn.wfu.edu)
Date: Thu Sep 09 1999 - 22:30:03 EDT

On Thu, 9 Sep 1999, Fred B. Moseley wrote:

> [I]n the present circumstances, I think it is ... likely
> that a US recession will occur because of the continuing
> crisis in the rest of the world, which will continue to
> increase the US current account deficit, which will
> eventually cause a significant devaluation of the dollar,
> etc....

It's plausible that if aggregate demand remains sluggish in the
rest of the world, this may spill over into a reduction of the
rapid growth seen in the US over recent years. But surely a
devaluation of the dollar would mitigate, and not accelerate,
that effect.

Allin Cottrell.

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