I am responding quickly because the Minsky-Levy-Ford conference in NYC starts today.
Q1: Philip: I’ve been thinking a lot about the problems with imports and the like because it directly affects, for example, Greece should they exit the euro. If they do so, their large dependence on imports will likely lead to a serious inflation. Another concrete example of heavy dependence on imports is (apparently) Argentina. A large amount of the inflation there — which, to my mind, could undermine the credibility of the Kirchner government if allowed run too long — is apparently due to the cost of imports. Is the most elegant solution to this not to work on the supply-side?
A: Agreed, especially for developing nations that do not produce much that is in demand outside their country. This is particularly true of nations that rely on subsistence agriculture. The JG can be used as a tool for development, including development of exports and/or tourism.