Date:          Sun, 23 Jul 1995 14:44:57 -0400 (EDT) 
From:          Roderick Hay <[log in to unmask]> Subject:       Re: Proof in the History of Economics 
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Surely the question is quite simple, despite the length of the posts on  
this topic. Can the banks (or governments) motivate people to use  
resources productively, that would not otherwise be used? If so then  
further productivity and growth rates will be higher. If not then there  
may be some misallocation of resources, causing lower future growth  
rates. The rest of the twaddle is irrelevant. 
        Rod 
 
The question should be different in the accent if we accept that banks  
"cannot increase or reduce their loan portfolios at their initiative"  
(Moore Basil, 1988); in other words bank loans are made primarily at  
the initiative of the borrower, especially where the credit lines have  
been previously negotiated.  
Giuseppe