(email exchange)
Dear David:
Let me refer you to what I call “Mosler’s Law”: There is no financial crisis so deep that a sufficiently large increase in public spending cannot deal with it.
But the European problem is, who can borrow? who can spend?
Solving that problem is the key – the only key – to resolving the crisis.
Regards, James
>
> Professor Galbraith,
>
> This is David … I’m a BBC Spanish listener. You told that the European
> Central Bank has not the same solid structure as the banking system in
> the States. I want to ask you what does Europe has to do to recover
> from this crisis? Ok, deliver less credits and mortgages maybe, I don’t
> know, you know it much better than me. But how the recovery will be
> seen through a decrease in unemployment? what does Spain has to do?
>
> Call me David (only 43)
> Yours sincerely,
>
> David …
>
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