Re: Functional Finance

If the Treasury is precluded from accumulating funds significantly in 
excess of its day-to-day transactional needs (as William Hummel 
informs us is in fact the case), and if the Treasury cannot "print" 
money to its own account for disbursement purposes (which William 
Hummel also informs us is in fact the case)--whatever Abba Lerner 
might have advocated to do with anticipated budget surpluses in such 
a regime is completely irrelevant to the principles of functional 
finance.

And whatever Lerner thought might be the *effects* of taxing, 
borrowing, spending or hoarding by a government following the 
principles of functional finance is likewise irrelevant to the 
principles of functional finance.

The actual effects can be determined empirically; adjustments can be 
made accordingly.

Bill Ryan: http://www.geocities.com/CapitolHill/Senate/7018

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