In other words, with fiat money, there is not intrinsic incapacity to finance growing fiscal deficits. The kinds of debt-to-GDP ratios that are thrown around in the United States and Europe—40 percent, 60 percent, 100 percent—are just that, numbers. They’re arbitrary numbers.
The issue is not what levels of debt are sustainable but how does the state intervene to support (or not) social expenditures and to determine the nature and level course of private business activity.
Read the whole thing at Toto, we’re not on the gold standard anymore
h/t Stephen Ewald
5 comments:
Marxian = Marxist?
"Marxist" has come to be associated with a political stance. "Marxian" in the economic sense means explicitly using principles of Marx and adapting them to current economic conditions. There are contemporary economists that implicitly adopt principles that were first developed by Marx in Classical economics.
a good article deserves a good video:
http://www.youtube.com/watch?v=pFlLMbMobrk
"Marxian = Marxist?"
Trekker = Trekkie
Tea Partier = Teabagger
There is a lot of that, for sure, Beowulf. "Marxist" has an extremely pejorative sense in the US today.
On the other hand, Marxian economics is a contemporary heterodox economic school.
"Marxian economics refers to economic theories on the functioning of capitalism based on the works of Karl Marx. Adherents of Marxian economics, particularly in academia, distinguish it from Marxism as a political ideology and sociological theory, arguing that Marx's approach to understanding the economy is intellectually independent of his advocacy of revolutionary socialism or his support of proletarian revolution.[1][2] Adherents consider Marx's economic theories to be the basis of a viable analytic framework, and an alternative to more conventional neoclassical economics. Marxian economists do not lean entirely upon the works of Marx and other widely-known Marxists; they draw from a range of Marxist and non-Marxist sources."
Wikipedia_Marxian economics
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