Weisbrot: the Long Haul

[Seth Ackerman]

> ----------
> From: 	Doug Henwood[SMTP:dhenwood at panix.com]
> Reply To: 	lbo-talk at lists.panix.com
> Sent: 	Friday, January 05, 2001 1:14 PM
> To: 	lbo-talk at lists.panix.com
> Cc: 	weisbrot at cepr.net
> Subject: 	RE: Weisbrot: the Long Haul
> 
> If you're going to make this argument, you have to explain why the 
> U.S. economy grew fairly briskly for years while the deficit was 
> being turned into a surplus.
> 
> 
Because of an unprecedented and unforeseeable deterioration in the
private-sector financial balance?

Randall Wray has a paper where he talks about a conversation he had with his
guru Hyman Minsky in 1984. They were considering various scenarios for
economic growth (in the light of the massive stimulus of the Reagan's
deficits). One scenario was for a large private-sector deficit, a large
public-sector surplus and a large current account deficit.

According to Wray, they immediately dismissed the idea as too far-fetched to
be worth exploring.

Seth