mercoledì 16 novembre 2011

To the Parliament of the Italian Republic, to the Political Parties (English version)

To the Parliament of the Italian Republic, to the Political Parties
In this difficult period Italy needs an authoritative government which is able to act with determination in both the European and global context. Although we do not neglect the recent serious responsibilities of the Italian ruling class which has been unable to bring about a process of modernisation of the country necessary to put it back on a growth path, the Italian economic stagnation in the last decade has its main cause in the European macroeconomic context, and particularly in the absence in the Eurozone of fiscal and monetary policies aimed at sustaining economic growth, full employment, trade balances between the Monetary Union members, and with which to provide a greater distribution equality within and among countries.
The European crisis, worsening particularly after the financial market attack on Italian sovereign debt, finds its origin in the lack of this pro-growth context, and can only partially be explained by the progressive collapse of credibility of the former government. The absence of the traditional role of lender of last resort within the mission of the European Central Bank (ECB) is an additional explanation of the dramatic assault on Italian and other Eurozone sovereign debt. The financial measures adopted by the Eurozone governments to sustain the sovereign debts of the European periphery, like the EFSF, have been revealed to be largely inefficient at solving the financial crisis of the small peripheral countries, let alone to face that of the larger peripheral economies. The contractionary fiscal measures that have accompanied the European financial support provided have worsened the recession and the financial crisis of those countries. At the moment the Eurozone is without a compass. Because of the opposition of the stronger European countries, it has even rejected the proposal advanced at the recent G-20 summit of a special emission of Special Drawing Rights by the IMF in order to support the sovereign debts under attack. The survival of the Monetary Union and even of the Single Market are at stake.
We believe that the current situation and the solution to its  short and long period causes can only be met within the context of a progressive change of all European policies; in this framework Italy must also endeavour to make necessary reforms. We stand for a stronger coordination of the European fiscal, monetary and wage governance subject to a complete commitment to full employment. For this reason we oppose a balanced public budget clause in the national Constitutions.
In these circumstances we maintain that the new Italian government should rapidly act through the appropriate European institution, with the required determination and political alliances, to obtain a firm and unlimited guarantee by the ECB on the European sovereign debts with the aim of lowering the interest rates to a pre-crisis level. This intervention has been supported by the American Administration and by many international economists of different theoretical persuasions. Also relying on this authoritative support, we believe that policies of fiscal contraction are counterproductive. The request of the ECB pro-active role should therefore be accompanied by a commitment not to reduce the ratio of national public debts on GDP, but rather to stabilize this ratio at the current levels. Financial markets would understand this commitment and appreciate it. A new Italian government, either composed by “technocrats” or by politicians, that limited its duty as a mere executor of the European requests, as expressed in the last weeks, would cause a worsening of the financial crisis, at the Italian, European and world level, with devastating social consequences, and the unsustainability of the present European monetary and trade institutions. Firm in denouncing such perils, Italy should be an inflexible promoter at the European and G-20 levels of prompt fiscal and monetary policies to sustain aggregate demand, particularly in the trade surplus national economies.
The reduction of the interest rates in association with the commitment to the stabilisation of the sovereign debt/GDP ratio, in the context of international expansionary policies, would in Italy (and elsewhere) free the necessary resources to sustain growth on the aggregate demand side and support competitiveness. More specifically, we believe that these resources – with those forthcoming from a serious attempt to reduce tax evasion and from an ordinary (not una tantum) wealth tax – should be used in the first place to reduce the tax burden on wages, increasing net wages; to support education, R&D and culture; to sustain public investment to promote public direct involvement in production; to Mezzogiorno and the environment, and to sustain legality. Around these objectives an authoritative new Italian government should commit itself in Europe to asking and returning dedication and trust to the Italian people.
Signatures
(please send new signatures to Cesaratto@unisi.it, astirati@uniroma3.it, Ciccone@uniroma3.it)
Acocella Nicola, Università di Roma 1
Agustí Colom. University of Barcelona. Spain
Alacevich Michele, Columbia University, New York, USA
Aldred Dr. Jonathan University of Cambridge, U.K. : Fellow in Economics, Emmanuel College
Alfonso Vadillo, Facultad de Economía
Andriani Silvano, economista, ex Parlamentare
Arachi Giampaolo,Università del Salento
Archer Richard, President, Catalyst Australia
Ariani Fabrizio Economics Department University of Leicester
Artoni Roberto, Università Bocconi Milano
Aspromourgos Tony (University of Sydney)
Associate Prof. of Economics, Dept. of Finance & Economics, King Fahd University , Dhahran, Saudi Arabia
Babos Paola, Planning Specialist / Spécialiste en Planification, UNICEF Burkina Faso
Bagnai Alberto, Università Gabriele D’Annunzio Pescara
Barba Aldo, Università di Napoli Federico II
Barkin    David, Profesor de Economía, Universidad Autonoma Metropolitana-Xochimilco, Coyoacan, DF MEXICO
Barry John, Queen's University Belfast (UK)
Basil John Moore, Economics Department Stellenbosch University, South Africa.
Bass Hans-Heinrich, Bremen University A. S., Germany
Battistini Alberto Università di Siena
Bazzani Guido M. CNR IBIMET Bologna
Benería Lourdes, Professor Emerita of Graduate Studies, Cornell University, Ithaca, USA and Senior Associate IIEDG (Inter-University Institute on Women and Gender Studies), Barcelona, Spain
Berti Alessandro, Università di Urbino
Biagioli Marco, Università di Parma
Bibi Samuele, Universitá di Roma 3
Bina Cyrus Distinguished Research Professor of Economics, University of Minnesota (Morris Campus), USA
Birolo Adriano, Università di Padova
Blaas Wolfgang, Vienna University of Technology, Austria
Blankenburg Stephanie, SOAS Università di Londra
Boffo Marco, School of Oriental and African Studies, University of London.
Bonifati Giovanni Università di Modena e RE
Bosco Luigi, Università di Siena
Bosi Paolo, Università di Modena e Reggio Emilia
Branco Manuel, University of Évora, Portugal.
Cabrera Morales Sergio, Universidad Nacional Autónoma de México (UNAM)
Cademartori Invernizzi José, Ex Ministro del Presidente Allende
Caianiello Eva, dottoranda, Ecole des Hautes Etudes di Parigi.
Campa Giuseppe ,  Università di Roma, Sapienza
Canale Rosaria Rita, Università di Napoli Parthenope
Cangiani Michele, Università Ca’ Foscari Venezia
Caravelis Georges, European Parliament, DG IPOL  secretariat, Brussels:
Carmichael Dr F, Reader in Industrial and Labour Economics, Univ. of BHam (UK)
Carrera Antonio Cuerpo, Università Complutense Madrid (Spagna)
Caruso Enza (università degli studi di Perugia
Caselli Gianpaolo, Università di Modena e Reggio Emilia
Caselli Lorenzo Università di Genova
Castellano Rosaria, Università di Macerata
Cesaratto Sergio,  Università di Siena
Chernomas Robert, University of Manitoba
Chiodi Guglielmo, Università di Roma 1
Cho Bokhyun, Professor of Economics, Hanbat National University, South Korea, Daejeon City, South Korea
Ciccone Roberto,  Università di Roma 3
Claudio Sardoni Professor of Economics Department of Economic and Social Analyses Sapienza University of Rome
Consigliere Isabella (Ord. Pol. Ec.Università di Genova)
Contini Bruno, "S. Cognetti de Martiis" Università di Torino
Correa Eugenia,  UNAM-Mexico.
Corsi Marcella, Università di Roma 1
Costabile Lilia, Università di Napoli Federico II
Cozzi Terenzio Università di Torino
Cruccolini Roberto, Arbeitsgemeinschaft kommunale und kirchliche Altersvorsorgung, München
D’Ippoliti Carlo, Università di Roma 1
Daniela Venanzi Professore Ordinario di Finanza aziendale Università degli Studi di Roma Tre
D'Apice Carmela Università di Roma 3
De Cecco Marcello, Scuola Normale Superiore di Pisa
De Francesco Massimo Università di Siena
De Leo Manfredi (Dottorando, Università Roma 3)
De Muro Pasquale, Università di Roma 3
De Nicola Fernando ricercatore ente pubblico di ricerca
De Vivo Giancarlo, Università di Napoli
Della Valle Claudio, economista, Independent International Consultant
Devillanova Carlo, Università Bocconi Milano
Di Gioacchino, Debora Department of Economics and Law, Sapienza University of Rome
Di Giorgi Umberto, Università di Roma 3
Di Guilmi Corrado, University of Technology, Sydney, Australia
Di Laurea Davide, Istat
Ditta Leonardo, Università di Perugia
Dorato Lorenzo, dottorando economia RomaTre
Edwards Michael, The Bartlett School, UCL, London
Elia Valerio, Università del Salento
Elsner Wolfram, Univ Bremen, Econ & Business Studies
Weeks John, Professor Emeritus, University of London
Epstein Gerald, University of Massachusetts, Amherst, MA, Usa
Evans Trevor, Berlin School of Economics and Law
Fabio Clementi, Dipartimento di studi sullo sviluppo economico, Università degli studi di Macerata
Farina Francesco, Università di Siena
Febrero Panos Eladio, Università di Castilla La Mancha (Spagna)
Felice Emanuele, Università autonoma di Barcellona (Spagna)
Fernando Pellerano Morilla, Universidad Autónoma de Santo Domingo, Santo Domingo, DOMINICAN REPUBLIC
Ferreiro Jesus, University of the Basque Country, Spain
Figuera Prof. Stefano Università degli Studi di Catania
Filipenko Anton, Taras Shevchenko Kyiv University – Ukraine
Fiorito Alejandro, Universidad de Buenos Aires, Argentina
Fiorito Luca, Università di Palermo
Fischer Andrew M., International Institute of Social Studies of Erasmus University Rotterdam (ISS)
Fontana Marzia, Research Fellow, Institute of Development Studies at University of Sussex , U.K.
Forges Davanzati Guglielmo, University of Salento
FRANGAKIS MARICA, NICOS POULANTZAS INSTITUTE, ATHENS
Franzini Maurizio,  Università di Roma 1
Fratini Saverio M., Università di Roma 3
Frenkel Roberto CEDES
Fubini Lia, Università di Torino
GARCIA-ARIAS Jorge, Department of Economics, University of Leon. Spain
Garofalo Guseppe Università di Roma 1
Garofalo Maria Rosaria, Università di Salerno
Gezgin Ulas Basar, former economics lecturer, Turkey-Vietnam
Ghignoni Emanuela, Università di Roma 1
Ghosh Jayati, Jawaharlal Nehru University, New Delhi, India.
Giannetti Marilena Department of Economics and Law University of Rome 1
Gianni Alfonso, già sottosegretario all’Industria (governo Prodi)
Ginzburg Andrea, Università di Modena e Reggio Emilia
Gnesutta Claudio, Università di Roma 1
Gomersall Nicholas (Luther College, Decorah, USA)
Gottardi Donata, ordinaria di diritto del lavoro, Università di Verona
Graça João Carlos, Departamento de Ciências Sociais, Universidade Técnica de Lisboa, Portugal
Granaglia Elena, Università di Roma3
Grillo Michele Università Cattolica Milano
Hamel Pierre J., INRS, Montréal, Québec
Harcourt G. C., University of New South Wales, Formerly University of Cambridge, UK
Hargreaves Heap Shaun P. University of East Anglia, Norwich UK
Helmedag Fritz, Lehrstuhl Volkswirtschaftslehr Technische Universität Chemnitz     
Hermann Arturo, Primo ricercatore presso ISTAT.
Hodgson Geoffrey, Università di HertfordShire (RU)
Holterman Martin, European University Institute
Iacono Roberto, Phd Candidate, Department of Economics, Norwegian University of Science and Technology, Trondheim
Ietto-Gillies Grazia, Emeritus Professor of Applied Economics, London South Bank University
Imperia Andrea Uniroma 1
Jaén-Garcia Manuel.  University of Almería (Spain)
Jakob Vestergaard, Danish Institute for International Studies, Copenhagen, Denmark
Jo Tae-Hee, Buffalo State College, US
Jorge Carreto, Universidad Nacional Autonoma de Mexico (UNAM), 
Jorge Garcia- Arias, University of Leon Spain
Jossa Bruno, Università 'Federico II' di Napoli
Keen Prof. Steve, School of Economics & Finance,University of Western Sydney,Australia
Kerr Prudence, University of Adelaide, AUSTRALIA
King John, La Trobe University, Melbourne (Australia)
Klaus Nielsen, Professor of Institutional Economics, Birkbeck, University of London, United Kingdom
Krimpas George E., Università di Atene (Grecia)
Kurz Heinz D., University of Graz , Austria
Laibman David, Professor (Emeritus), City University of New York, USA
Lampa Roberto, Università del Salento - New School for Social Research
Lavoie Marc, Università di Ottawa (Canada)
Lazzarini Andres, University of Buenos Aires & CONICET, Argentina
Lee Frederic S., Department of Economics, University of Missouri-Kansas City
Leon Paolo, Università di Roma 3
Levrero Enrico Sergio, Università di Roma 3
Levy-Orlik Noemi, UNAM, Mexico
Liagouras George, University of the Aegean, Chios Business School, Chios, Greece
Libanio Gilberto, Faculdade de Ciências Econômicas, Universidade Federal de Minas Gerais Brazil
Lisi Domenico, Research Assistant, Università degli Studi di Catania
Liudmyla Vozna (independent economist) Ukraine (Zhitomir)
Lo Turco Alessia, Università Politecnica delle Marche
Loaiza Quintero Osmar Leandro, Universidad Nacional de Colombia, FCHE, Medellín
Lombardi Mauro, Università di Firenze
Loperato Francis Luiz C., Università di Campinas (Brasile)
Lopez Julio, Universidad Nacional Autonoma de Mexico
Louis-Philippe Rochon, Laurentian University, Ontario (Canada)
Luca Fantacci, Università Bocconi Milano
Luca Solari Professore straordinario di Organizzazione aziendale Università degli Studi di Milano
Lucarelli Bill, University of Western Sydney
Lucarelli Stefano, Università di Bergamo
Luengo Fernando, Economía Aplicada, Instituto Complutense de Estudios Internacionales, Campus de Somosaguas (Spagna)
Lugli Loris, già direttore IRES Emilia Romagna
Lunghini Giorgio, Università di Pavia
Maccarini Andrea M. Department of SociologyUniversity of Padova
Michl Thomas, Economics, Colgate University Hamilton, New York
Madsen Ove  Mogens, Aalborg University (Danimarca)
Maffeo Vincenzo, Università di Roma 1
Maharajh Rasigan, chief director institute for economic research on innovation, faculty of economics and finance, tshwane university of technology, South Africa
Mañé-Estrada Aurèlia, Economic Policy lecturer (Universitat de Barcelona)
Mántey Guadalupe, Universidad Nacional Autónoma de México (UNAM)
Marani Ugo, Università di Napoli Federico II
Marco MUSELLA, Ord. di Economia Politica, Preside di Scienze Politiche
Marco Ponti, professore ordinario di economia applicata Politecnico di Milano
Marcuzzo Maria Cristina, Università di Roma 1
Margherita Russo, Professore di Politica Economica, Università di Modena e Reggio Emilia
Marletto Gerardo Università di Sassari
Martinelli Alberto Professor Emeritus of Political Science and Sociology, University of Milan, Italy
Matera Claudio, T.M.C. Asser Instituut, L'Aja, Paesi Bassi
Mazzucato Prof.a Mariana, SPRU, University of Sussex
McCrate Elaine, Economics and Women's Studies, University of Vermont, USA
McDonnell Thomas, Economist, Think-Tank for Action on Social Change (TASC), Dublin, Ireland
McDonough Prof. Terrence,Economics, National University of Ireland, Galway
Meaulle Matthieu, Economic Advisor, Foundation for European Progressive Studies (FEPS), Brussels
Michelini Luca, Università LUM Bari
Milonakis Dimitris, Department of Economics, University of Crete
Mistri Maurizio, Università di Padova
Mittone Luigi, Director Computable and Experimental Economics Laboratory, University of Trento
Mohun Simon, Emeritus Professor of Political Economy, Queen Mary, University of London
Mohun Simon, Emeritus Professor of Political Economy, Queen Mary, University of London
Mongiovi Gary, St.Johns University (USA)
Morroni Mario, Università di Pisa
Mott Tracy, Department Chair, Department of Economics, University of Denver, U.S.A.
Musotti Francesco, Università di Perugia
Naldi Nerio Uniroma1.it
Napolitano Oreste, Università di Napoli Parthenope
Nissanke Machiko, SOAS, University of London
Nuti Domenico Mario, Università di Roma 1
Ofria Ferdinando, Università di Messina
Ortona Guido, Università del Piemonte Orientale, Alessandria
Osculati Franco, Ordinario di Scienza delle Finanze, Università di Pavia
Pack Spencer J. Professor of Economics, Connecticut College, New London, CT  USA
OTMANI Abdelhafid, Paris8 university
Ötsch Walter Otto, Johannes Kepler Universität, Linz, Austria
Pagano Ugo, Università di Siena
Paladini Ruggero , Università di Roma 1
Palazzi Paolo, Università di Roma 1
Palma Daniela - ENEA
Palumbo Antonella, Università di Roma 3
Pancotto Francesca Assistant Professor of Economics University of Modena and Reggio Emilia
Panico Carlo, Università di Napoli
Paolo PAESANI TOR VERGATA
Park Man-Seop, Università di Seul (Corea del sud)
Parodi Giuliana Università D'Annunzio Chieti-Pescara
Parrinello Sergio Università di Roma 1
Pastrello Gabriele, Università di Trieste
Pat Devine, University of Manchester, UK
Peacock Mark, York University, Toronto, Canada
Pennacchi Laura, Fondazione Basso
Pereira Fernando Batista , Cedeplar/Universidade Federal de Minas Gerais
Perri Stefano, Università di Macerata.
Pessali Huascar (Federal University of Parana, Brazil)
Picchio Antonella, Università di Modena e Reggio Emilia
Pier Luigi Porta Università degli studi di Milano-Bicocca
Pires Eugénia, Economista, Portugal, Research student at SOAS London.
Pisauro Giuseppe professore ordin. Scienza delle finanze, Fac. Economia - La Sapienza
Pivetti Massimo, Università di Roma 1
Pizzuti F. Roberto, Università di Roma 1
Pochini Silvia Università di Pisa
Podkaminer Leon, Wiener Institut für Internationale Wirtschaftsvergleiche Vienna (Austria)
Pugno Maurizio, Università di Cassino
Puig Albert, Universitat Oberta de Catalunya (Spain)
Raberto Marco, University of Genova
Ramazzotti Paolo, Università di Macerata
Rangone Marco, Università di Padova
Rapetti Martin, University of Buenos Aires, Argentina.
Ravagnani Fabio, Università di Roma 1
Realfonzo Riccardo, Università del Sannio
REATI Angelo, former EU official
Ricci Andrea, Università degli studi "Carlo Bo" di Urbino
Richardson Colin, Internet Economics Consultant, Imperial College London
Ricottilli Massimo Università di Bologna
Rock Charles P.  Dr., Visiting prof., National Research Univ.- Higher School of Economics, Moscow, Permanent Position: Professor of Economics, Economics Department, 
Rollins College, Winter ParkUSA
Rossi Sergio, Professore ordinario di economia, Università di Friburgo (Svizzera)
Russo Alberto, Università Politecnica delle Marche
Russo Vincenzo Università di Roma 1
Sabatini Fabio, Università di Roma 1
Saccareccia Mario, Università di Ottawa (Canada)
Sacconi Lorenzo, Università di Trento (direttore EconomEtica)
Salanti Andrea, Università di Bergamo
Saraceno Francesco, Research Center in Economics of Sciences-Po, Paris
Sau Lino, "S. Cognetti de Martiis" Università di Torino
Savoia Antonio (Dr), Lecturer in Development Economics , Institute for Development Policy and Management , The University of Manchester (UK)
Sawyer Malcolm, Università di Leeds
Scacciati Prof. Francesco, Dipartimento di economia, Facoltà di Scienze Politiche, Università di Torino
Schaffer Harwood D., University of Tennessee Institute of Agriculture, Knoxville (US)
Schiattarella Roberto, Università di Camerino
Schraner Ingrid GAICD, School of Economics and Finance, University of Western Sydney, Australia
Sciulli Dario Ricercatore Dipartimento di Economia Università "G. d'Annunzio" di Chieti-Pescara
Sergio Brasini, Prof. Ord. di Statistica economica, Università di Bologna
Severati Paolo – Ricercatore Isfol
Shaikh Anwar, Professor of Economics, Department of Economics, New School for Social Research, New York
Silva Francesco, Università di Milano Bicocca
Simonazzi Anna, Università di Roma 1
Soci Anna, Univesrità di Bologna
Solari Stefano, Università di Padova
Soliani Riccardo Università di Genova
Sordi Serena, Università di Siena
Spalletti Stefano, Università di Macerata
Stefania Gabriele, dirigente ricerca CNR
Stefano Sylos Labini, ENEA Roma
Stein Howard, University of Michigan,
Stirati Antonella, Università di Roma 3
Stroffolini Francesca Università Federico II Napoli
Tabb William K., Professor of Economics Emeritus, City University of New York
Tamborini Roberto Dipartimento di Economia - Università di Trento
Theocarakis, Nicholas J., Faculty of Law, Economics and Politics, National University of Athens
Thomasberger Prof. Dr.
Claus, University for Applied Sciences, Berlin
Tiberi Mario, Università di Roma 1
Torsten Heinrich, University of Bremen
Travaglini Carlo, M., Università di Roma 3
Trezzini Attilio Università di Roma 3
Tridico Pasquale Università di Roma 3
Trillo David (Madrid), profesor titular de Universidad Rey Juan Carlos
Tropeano Domenica, Università di Macerata
Università Federico II - Napoli
Uthman Dr. Usamah Ahmed
UXÓ JORGE, University of Castilla - La Mancha, Spain
Vaggi Gianni Università di Pavia
van Ophem Johan, Wageningen University, The Netherlands
Veneziani Roberto, School of Economics and Finance, Queen Mary University of London
Vercelli Alessandro, Università di Siena
Villa Paola Dipartimento di Economia Università degli Studi di Trento
Visaggio Mauro, Università degli Studi di Perugia
Vote Christopher, Graduate School of Economics, Hitotsubashi University, Tokyo
Watt Andrew, Senior researcher European Trade Union Institute
WHITE GRAHAM, School of Economic, THE UNIVERSITY OF SYDNEY
Zamparelli Luca, Università di Roma 1
Zezza Gennaro Università di Cassino e Levy Institute (USA)

3 commenti:

  1. Dear Friends: I share your concern about the grave situation in Italy. I support much of the petition. In particular, I agree that the ECB must stand ready to buy government debt--indeed, it should announce its intention to drive interest rates for government debt of every member below 3%, and keep buying until it achieves the goal. I also agree that fiscal contraction must be abandoned. There are however three points discussed in the petition on which my views diverge:

    > a) The solution to the Euro crisis is not to be found in SDRs and the IMF. The ECB can immediately end the problem with government debt. No external help is required, nor should it be sought.
    > b) The petition should not call for stabilizing debt ratios at current levels. With an ECB backstop, the debt ratio disappears as a matter for concern. It is impossible to say in advance what debt ratio will be required for Italy (and others) to grow back toward prosperity and full employment. There is no point in tying government's hand to any particular debt ratio.
    > c) The petition's statement about "freeing resources" to direct them to promoting full employment is confused. It seems to be based on some loanable funds model. Europe's problem is that it has far too many "free resources" that are idle--unused capacity: labor, factories--so it does not need to "free" any more. If the petition is discussing "financial resources", then these are never a scarce resource that needs to be "freed". I also do not like the statement about taxes. Of course tax evasion should be reduced--but that is a matter of fairness, not "financial resources".

    The first of these points is admittedly minor. The final two points are important. I would like to join my friends in signing the petition but I regret to say that I cannot support arbitrary debt limits (once there is a backstop--and without the backstop then all euro-using governments must reduce their debt ratios tremendously, perhaps to no more than 15% to 20% of GDP), nor a confusing statement on the necessity of freeing resources.

    > L. Randall Wray
    > Professor, Economics, University of Missouri-Kansas City
    > Senior Scholar, Levy Economics Institute

    RispondiElimina
  2. I believe that Randall Wray’s remarks are very relevant and, in a sense, should be taken as an important addendum to the document. However.
    1. The reference to the SDRs and the IMF is just a rhetoric device to show how much Germany is against any reasonable solution. The most imaginative solution have been designed in the past months to bypass the close-minded views of German MPs and economists, such as to use the EFSF or SDRs to capitalize the ECB and let it to support the European sovereign debts - as if a central bank needs to be capitalised! It does mean that we accept these fictions. We may support them as long as they are useful to convince Germans; as also elsewhere people like to be deceived (Randy, you remember Abba Lerner on Paul Samuelson’s fictions in explaining PAYG).
    2. Most of us (unfortunately not all) would fully agree that “there is no point in tying government's hand to any particular debt ratio”. In the current situation, however, as long as the ECB leads the interest rates on public debts to very low levels and the nominal growth rate is higher of the nominal interest rate, a stabilisation of the debt/GDP ratio at the current level is consistent with a primary deficit, much needed to support aggregate demand. This is a feasible political request; it is something politicians at least accept to be examined. To go beyond this is to accept political irrelevance. But I agree that a remark should have been introduced in the text that for many of us there are no “natural” debt/gdp levels to be stabilised.
    3. More embarrassing is the third remark. I agree that the expression of “freeing resources” reminds of mainstream theory. According to this theory the economy is, on average, in full employment and so if you want to use more resources in one direction you must “free” them from existing uses, guns or butter. We used it to be understood. I anticipate Randall’s objection that we must be rigorous since the world is already full of ambiguities. I agree. But it is terribly difficult to be simple and intuitive in order to be understood by the general public, and the Keynesian point of view is often counter-intuitive (we have often to explain that is the earth that rotates around the sun). Better would have been to write that in the Sisyphus effort to abate public debts you destroy resources; with the appropriate monetary policies debts are not a problem, and by focusing on growth you create resources. But the message as it is now: “if we free resources form non-abating the public debt, we can then use them to grow” might not be perfectly meticulous, but it is likely understood.
    I do not think, finally, that to argue that fighting tax evasion- so to divert income from private to social consumption - and use public spending more efficiently are terribly mainstream (or too Teutonic) propositions.
    We must try hard to be simple, intuitive and rigorous. In this sense I thank Randall for his comments and I believe that (almost) all supporters would approve them as a “first amendment” to the document. (S.Cesaratto)

    RispondiElimina
  3. Dr. Usamah Ahmed Uthman19 novembre 2011 21:43

    Many thanks for sending me the petition. I surely support its general theme. However, may I suggest the following changes?
    1) The ECB needs to perform as a lender –of – last resort, but a guarantor of first resort for sovereign debts.
    2) However, a speedy economic recovery and solution of this crisis requires massive debt restructuring, including massive debt forgiveness. Such debt forgiveness will reduce the urgency for governments' austerities, as well as the monetization of governments' debts.
    3) Debt repayments should be in tandem with actual real economic growth, not with tight and arbitrary schedules.
    4) The word "authoritative" in the petition sounds too strong and may misunderstood. I suggest it is replaced with something like " strongly committed".
    5) Would it be possible to inform me if any of the suggested changes are included in the petition?
    Thank you very much once again
    Regards
    Dr. Usamah Ahmed Uthman
    Associate Prof. of Economics,
    Dept. of Finance & Economics,
    King Fahd University of Petroleum & Minerals (KFUPM)Dhahran 31261, Saudi Arabia

    RispondiElimina