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REPLY TO THREAD
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Subject
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Austrian School of economist.."The Yield from Money Held" Reconsidered
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Original Message
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(snip)
Here it is: the holding of money, i.e., the not spending of it on either consumer or investment goods, is unproductive, indeed detrimental. According to Keynes, the government or its central bank must create and then spend the money that "savers," i.e., the holders of cash balances, are unproductively holding back, so as to stimulate both consumption and investment. (Needless to say, this is precisely what governments and central banks are presently doing to supposedly rectify the current economic crisis.)
[link to mises.org]
shall we say this is it in a nut shell....paladin
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