tag:blogger.com,1999:blog-1513588060557517621.post3669465594915528650..comments2023-03-22T12:40:49.113+01:00Comments on Notes on the Next Bust: Why it is so important to use government deficits rather than negative rates to boost the economy (demonstrated with a lot of pretty pictures).Ari Andricopouloshttp://www.blogger.com/profile/00181838814176635218noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1513588060557517621.post-14767653811897570632016-04-05T15:30:10.881+02:002016-04-05T15:30:10.881+02:00Japan is the same as everywhere else. They have ju...Japan is the same as everywhere else. They have just been running with very high levels of both private and public sector debt so their saving rate is very high. They need to run very large government deficits.<br /><br />Althought they are running relatively high government deficits, they actually just aren't big enough to combat the saving rate. They are always looking to increase VAT or cut spending at any sign of economic upturn. And they are using monetary policy too much rather than fiscal policy.<br /><br />In fact with Japan's government debt being so high, any spending only needs a multipler of around 0.45 to reduce the govt debt to GDP ratio. Targeted spending should have a multiplier of well over 1. As everywhere the political fear of larger deficits has been a hindrance.Ari Andricopouloshttps://www.blogger.com/profile/00181838814176635218noreply@blogger.comtag:blogger.com,1999:blog-1513588060557517621.post-1006204827981002062016-04-05T14:43:37.686+02:002016-04-05T14:43:37.686+02:00I wonder if you will make a blog post looking at J...I wonder if you will make a blog post looking at Japan as it has been doing Keynesian stimulus with a high ratio of private sector debt to GDP.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1513588060557517621.post-18858258910830691212016-02-25T22:15:34.309+01:002016-02-25T22:15:34.309+01:00"Andrew Carnegie, Industrial Philanthropist&q..."Andrew Carnegie, Industrial Philanthropist", p. 21, third paragraph.<br /><br /><br />https://books.google.com/books?id=vgi3OveS4b4C&printsec=frontcover&dq=andrew+carnegie&hl=es&sa=X&redir_esc=y#v=onepage&q=work%20hours&f=false<br /><br />p. 32 explains where he was taught to be a capitalist. He was encouraged to buy corporate stock with a loan from his boss. <br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1513588060557517621.post-6279544461608467782016-02-25T20:00:13.078+01:002016-02-25T20:00:13.078+01:00So, the argument in the title addresses liquidity....So, the argument in the title addresses liquidity. But, most arguments on the internet do not address the cost of what is traded for that liquid currency or the deficits.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1513588060557517621.post-75354109887146155372016-02-25T19:56:19.779+01:002016-02-25T19:56:19.779+01:00The entity concept in accounting matters.
What do...The entity concept in accounting matters.<br /><br />What does the private parties exchange for currency?<br /><br />What does the goverment receive for deficit (currency created and spent)?<br /><br />This can be analysed using double entry bookkeeping and the fundimental entity concept in accounting. Each entity has seperate transactions recorded in their own seperate journal and ledger.<br /><br /><br /><br /><br /> http://www.accountingtools.com/questions-and-answers/what-is-the-business-entity-concept.html<br /><br /><br />https://books.google.com/books?id=uybiBAAAQBAJ&pg=PA12&dq=entity+concept+accounting&hl=es&sa=X&redir_esc=y#v=onepage&q=entity%20concept%20accounting&f=false<br /><br />"One of the most basic concepts used in the preparation of financial statements is that of the accounting entity."<br /><br /><br />https://books.google.com/books?id=sYlWqWB0sz4C&pg=PA49&dq=entity+concept+accounting&hl=es&sa=X&redir_esc=y#v=onepage&q=entity%20concept%20accounting&f=false<br /><br />https://books.google.com/books?id=nHV0szMRqp0C&pg=PA7&dq=entity+concept+accounting&hl=es&sa=X&redir_esc=y#v=onepage&q=entity%20concept%20accounting&f=false<br /><br /><br />Answer 1, Goods and services (time, talant, and knowledge.)<br /><br />Answer 2, The same.<br /><br />In economics this is called crowding out. But, most people consider this in other realistic terms.Anonymousnoreply@blogger.com