Liberal Democracy (was Robert Mundell: Genius unbound)

[Rakesh Bhandari]

> That's why I said you could use hours of equivalent labor instead of dollar
> balances. No matter how much you add in, you are not going to get past DeLong's
> very generous upper bound of 2% of GDP.

Enrique, why are we taking  GDP as the denominator in measuring the
importance of so called third world production? Doesn't GDP  include
such  'production' as advertising, retailing,  insurance (including claim 
adjustments), banking, and of course govt orders? A lot of this is not
even production, much less capitalist production. Oh well, I don't have
any textbooks in front of me about what goes into a GDP measurement. Then
I am not even sure what the question here is--whether there is a
substantial transfer of value on an intl scale? Substantial in terms of
the GDP of the transferring country? Important to maintaining
profitability in the country to which it is transferred?

 Rakesh