Council of Canadians - credit question
Max Sawicky
sawicky at epinet.org
Mon Apr 10 10:42:00 PDT 2000
. . .
Money arises in exchange. Certainly there's an extension of credit
involved, but there has to be some real sector involvement or the
money is going to be worthless. Central bank extensions of credit
without any offsetting expansion in productive capacity will be
inflationary. Sometimes that appears as a rising CPI; sometimes as a
wacky stockmarket. Doug
oh yeah. And another thing.
An extension of credit with no offsetting expansion in
productivity capacity may be inflationary, but the money
is far from worthless on that account.
mbs
More information about the lbo-talk
mailing list