Monthly Archives: October 2014

The technique of deficit finance and the multiplier reviewed

Posted on October 18, 2014 by haroldchorneyeconomist

I am republishing below a post I wrote trying to explain the multiplier as an effective policy tool embedded in Keynesian deficit finance. It first appeared in my older blog on blogspot Harold Chorney political economist in the middle of … Continue reading →

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Monetized government Debt as a percentage of the broadly defined money supply and the rate of inflation Canada 1950 to 1989

Posted on October 8, 2014 by haroldchorneyeconomist

I am reproducing the following table of data because of its importance in showing that there is no necessary correlation between the percentage of debt that is monetized as a proportion of the broadly defined money stock and the rate … Continue reading →

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Even IMF believes in debt financed public infrastructure: at current low interest rates multiplier may be 3

Posted on October 6, 2014 by haroldchorneyeconomist

According to a commentary by Larry Summers in today’s Financial Times the IMF has pronounced itself finally in favour of major public infrastructure investment financed not by tax increases but by medium and long term borrowing. The current low interests … Continue reading →

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Keynesian stimulus policies bear fruit:US unemployment drops to 5.9% lowest since 2008

Posted on October 3, 2014 by haroldchorneyeconomist

The unemployment rate dropped to 5.9 % in September the lowest rate since 2008.The broadly defined definition of unemployment which includes discouraged workers who have dropped out of labour markets also fell to 11.8 %. This is very good news … Continue reading →

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