tag:blogger.com,1999:blog-8595404115121834255.post4283030844045206862..comments2024-03-28T03:24:05.678-04:00Comments on NAKED KEYNESIANISM: The deep causes of the Great Divergence: or why China fell behindMatias Vernengohttp://www.blogger.com/profile/09521604894748538215noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8595404115121834255.post-83040285988406678242013-11-28T18:02:00.306-05:002013-11-28T18:02:00.306-05:00so, what would the be the demand side story for Ch...so, what would the be the demand side story for China? Interestingly enough, Wallerstein highlights Sweezy's story in his debate with Brenner.David Fieldshttps://www.blogger.com/profile/16368656243683642296noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-11574103041767906952013-11-28T17:43:56.778-05:002013-11-28T17:43:56.778-05:00This comment has been removed by the author.David Fieldshttps://www.blogger.com/profile/16368656243683642296noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-75538478721046413892013-11-28T17:04:12.832-05:002013-11-28T17:04:12.832-05:00If you believe O'Brien, as noted in the previo...If you believe O'Brien, as noted in the previous post, it's the reduced ability to tax their population, which inoculated them from expanding debt, and the different requirements (more spending) associated with keeping a permanent army and navy. I tend to think that this story lacks the demand side for why more public spending was necessary (in the case of Western Europe demand for oriental luxuries; the Sweezy story in his debate with Dobb).Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-72279797357927782462013-11-28T15:46:45.024-05:002013-11-28T15:46:45.024-05:00so, then the question is what historical circumsta...so, then the question is what historical circumstances negated China from developing a significant market for public debt. David Fieldshttps://www.blogger.com/profile/16368656243683642296noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-84427323913725555612013-11-28T15:45:41.902-05:002013-11-28T15:45:41.902-05:00oops, you're right, my Wrayian slip.oops, you're right, my Wrayian slip. David Fieldshttps://www.blogger.com/profile/16368656243683642296noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-33686081438509116782013-11-28T15:40:54.987-05:002013-11-28T15:40:54.987-05:00I think you got it backwards. The fact that they d...I think you got it backwards. The fact that they did not develop a significant market for public debt is what led to underdevelopment of financial markets, even though they did invent paper money.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-36948178550008940892013-11-28T15:35:33.097-05:002013-11-28T15:35:33.097-05:00Gunder Frank would disagree with me? I am shocked....Gunder Frank would disagree with me? I am shocked. At any rate, if China invented paper money, and had credit, what stinted the Chinese from developing public debt? David Fieldshttps://www.blogger.com/profile/16368656243683642296noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-90353893038512464442013-11-28T14:56:25.741-05:002013-11-28T14:56:25.741-05:00Well the Chinese did invent paper money, and had c...Well the Chinese did invent paper money, and had credit. Gunder Frank would disagree with you. On the other hand, it is true that development of public debt in the early stages of the transition to capitalism allowed for more sophisticated financial markets in the West.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-48353806959688101652013-11-28T14:24:27.157-05:002013-11-28T14:24:27.157-05:00In addition, despite the evidence of precious meta...In addition, despite the evidence of precious metals as media of exchange in China, it was in Europe that the innovation of credit instruments facilitated, and set in motion, the successive stages of capitalist development, contributing to the evolving great divergence...<br />David Fieldshttps://www.blogger.com/profile/16368656243683642296noreply@blogger.com