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To: reaper who wrote (48809)	8/2/2002 3:11:43 PM
From: AllansAlias	Read Replies (1) \| Respond to of 209892

You know the difference between determinants and determinates. You are too smart for this board and I am requesting you be banned. -bg Of course, what Keynes's causal chain does not include, is debt, with a capital D and that rhymes with T, and that stands for Trouble, yes, right here in River city.

To: reaper who wrote (48809)	8/3/2002 6:58:30 PM
From: yard_man	Read Replies (1) \| Respond to of 209892

but, also ... savings == forgone consumption == resources "freed" to capital investment. So the problem cannot be fixed by simply "stimulating" new investment. If it were simply a chain, this would be the solution. There are simpler determinants -- just ask yourself what underlies the "propensity to consume," the apparent "marginal efficiency of capital" and the "rate of interest." I think it can be argued reasonably well that everything comes back to allowing markets to set 1) rates of interest and 2) rates of exchange among the various goods in the economy based on individuals' preferences -- avoiding that -- distorts the other supposed determinants and as a result, the savings <-> investment relationship is distorted. But the problem with econo-speak in the press is more fundamental -- it posits that increased consumption can stimulate capital investment. That is definitely the cart propelling the horse.