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From: ec120bgt@sdcc3.UUCP (ANDREW VARE)
Newsgroups: net.politics.theory
Subject: Re: Business Cycles -- Note to Gadfly
Message-ID: <2878@sdcc3.UUCP>
Date: Sat, 25-May-85 22:13:06 EDT
Article-I.D.: sdcc3.2878
Posted: Sat May 25 22:13:06 1985
Date-Received: Thu, 30-May-85 01:23:22 EDT
References: <1146@ratex.UUCP>
Organization: U.C. San Diego, Academic Computer Center
Lines: 16
Keywords: fourier

In article <1146@ratex.UUCP>, mck@ratex.UUCP (Daniel Kian Mc Kiernan) writes:
> 
> Business cycles are indeed not a strong point of Capitalism; nor are they a
> weak point.  They are, in fact, not a point of Capitalism at all, but rather
> of government manipulation of the money supply which distorts patterns of
> savings and investment.
> 
>                                Back later,
>                                DKMcK

As an addenum, note the central bank's behavior just before the
Great Depression. Almost no open market activity on their part,
even in the face of a money supply contraction in the order of 25%
in three years! Hardly what I call responsible monetary management!

Andrew T. Vare