tag:blogger.com,1999:blog-6276561747841568697.post897539053677429137..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Paul Krugman: We Need Inflation, and Lots of ItWilliam L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-6276561747841568697.post-88480959127397298872020-10-13T06:15:12.539-04:002020-10-13T06:15:12.539-04:00You can get now get this app : MARVEL Strike Force...You can get now get this app : <a href="http://missapk.com/marvel-strike-force-mod-apk/168/" rel="nofollow">MARVEL Strike Force Mod Apk (Unlimited Energy)</a><br />Danny Danialshttps://www.blogger.com/profile/05458568102998926397noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-11974071657642400972019-09-22T06:27:30.048-04:002019-09-22T06:27:30.048-04:00thanks for this article. you might be interested i...thanks for this article. you might be interested in<br /><a href="https://clubapk.com/coinflation-gold-silver-apk/" rel="nofollow">coinflation gold and silver app</a>parvinahttps://www.blogger.com/profile/00373128738821413125noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-70153913713134554572017-07-26T10:54:14.619-04:002017-07-26T10:54:14.619-04:00You should explore this blog https://writemypaper4...You should explore this blog <a href="https://writemypaper4me.org/" rel="nofollow">https://writemypaper4me.org/</a> for even more great writing articles.Anonymoushttps://www.blogger.com/profile/02036141162168507103noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-53852869321744760482010-11-06T15:00:13.887-04:002010-11-06T15:00:13.887-04:00I've been toying with the theory that holding ...I've been toying with the theory that holding down inflation during the boom's of the 90's and 2000's was exactly the wrong thing to do.<br /><br />While housing made it's own false inflation, daily consumable purchases never saw any appreciable inflation. If that were to happen, where people actually asked themselves if they needed such a bigger newer home because other things cost a bit more than they were comfortable with, the housing boom/bust could never had the legs it did. Stocks could have never gotten that out of control (and they're back to being overpriced).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-50199637312857793462010-04-09T23:23:04.144-04:002010-04-09T23:23:04.144-04:00@ Jim Brownfield
I think we're basically on t...@ Jim Brownfield<br /><br />I think we're basically on the same page except that we disagree a bit as to the relative magnitudes of the direct wealth transfer effects vs the false-information effects. I understand your argument regarding the false-information effect and agree with you. Given the choice between constant (or, more generally, foreseeable) inflation and a randomly fluctuating one, surely the predicable one allows people to plan properly whereas the other does not.<br /><br />But either way, the economy will reorg itself as people try to get better access to the money printing machines.<br /><br />There is a crucial difference with commodity money: The cost of commodity money has strong negative feedback towards the cost of producing (e.g. mining) it. The profit in producing commodity money tends to be no more than other economic endeavors.<br /><br />Not so with fiat money. You just turn a crank and money pops out. So the producer of this money distorts the economy by consuming without producing. His consumption leads producers to change their business models to better suit his needs. Resources are diverted from genuinely productive things. The more inflation there is, the more this occurs. <br /><br />You can argue that the money typically gets lent, but that only passes the distortion one link down the chain and creates a false incentive to borrow. The guy with the money machine will lend out at absurdly low interest, because he has no risk: if the loan goes sour, he just prints more money. So borrowing money becomes the sensible thing to do. The guy with the money printing machine is essentially sharing his counterfeiting profit with you.<br /><br />This is not a minor distortion when done at the scale of modern central banks.keemanhttps://www.blogger.com/profile/04490568925996013181noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-11649900612008020002010-04-09T21:53:29.381-04:002010-04-09T21:53:29.381-04:00As you can see, Sasha is a real character, and a b...As you can see, Sasha is a real character, and a beautiful child!William L. Andersonhttps://www.blogger.com/profile/01802990642236807359noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-48615937802049155372010-04-09T21:52:56.348-04:002010-04-09T21:52:56.348-04:00Hello this is Bill Anderson's daughter,Sasha!
...Hello this is Bill Anderson's daughter,Sasha!<br />And I love Harry Potter! On the Deathly Hallows(Last book) Well Bye!!William L. Andersonhttps://www.blogger.com/profile/01802990642236807359noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-8636479423797197242010-04-09T17:33:51.723-04:002010-04-09T17:33:51.723-04:00@kee
I don't completely disagree (although in...@kee<br /><br />I don't completely disagree (although in a sound money system gold and silver mines still are creating money).<br /><br />The bubbles, however, are products of false information, and I believe that's the primary problem. Money represents the synapses in the economic "neural network". Constant inflation (which I'm not advocating, just to be clear) can be adapted to by the neural net. Constantly varying inflation is more problematic. I still contend that Krugman's "dismissals" of inflation damage intentionally intermix the consequences of constant inflation (as in dI/dt = C, where C is a constant) with those of varying inflation. The varying inflation is far more problematic.Pandemichttps://www.blogger.com/profile/02315340208949970292noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-32348898187398254532010-04-09T16:01:22.319-04:002010-04-09T16:01:22.319-04:00@ Jim Brownfield
Your argument about constant inf...@ Jim Brownfield<br /><br />Your argument about constant inflation not distorting the economy relies on yet another flaw in aggregate models. When the "economy" is a single thing then putting money into "it" makes sense. You don't have to make distinctions about which part of "it" it goes into.<br /><br />Put the fact is that in the real world, inflation happens because somebody is off the side printing money and using it. That this is, by itself, a very real first-order distortion in the economy and that it causes the second-order distortion that you are particularly incented to be doing business with the guy who's got the money-printing machine is lost in the macro models.<br /><br />The false information problem is *in addition* to these distortions.keemanhttps://www.blogger.com/profile/04490568925996013181noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-11512283997914691872010-04-09T15:32:34.544-04:002010-04-09T15:32:34.544-04:00Krugman is very ignorant of history. The USA reco...Krugman is very ignorant of history. The USA recovered very rapidly post WWII despite its high debt for a number of reasons, including the Truman administration lifting hundreds of regulations on businesses, the partial demobilization of the US armed forces, and the situation in Europe. He doesn't remember that in those immediate post war years the USA faced virtually no competition as the industrial powerhouses of Europe and Asia lay in ruins. Japan had 90% of its urban areas wiped out by bombing. Germany had a similar situation. In addition, 1/3 of Germany had been taken over by the Soviets. France, Italy, the Netherlands, and Belgium had all been heavily damaged by the battles, and rampaging armies. then, to top it off the various European governments adopted milder versions of socialism that hampered their own recovery. These factors as well as others led to the USA becoming the mightiest industrial nation on earth in the fifties and sixties. it wasn't magic. It was a combination of giving businesses liberty, wide open markets, shrinking regulation, all things Krugman opposes.Paul the Cab Driverhttps://www.blogger.com/profile/13087708243601206688noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-13174901988275804402010-04-09T15:29:03.929-04:002010-04-09T15:29:03.929-04:00If the stated value, of “Federal” Reserve notes, f...If the stated value, of “Federal” Reserve notes, falls enough compared to copper and nickel, the 1946-2009 nickels, composed of cupronickel alloy, could become relatively rare in mass circulation.<br /><br />The April 9th metal value of these nickels is “$0.0609425” or 121.88% of face value, according to the “United States Circulating Coinage Intrinsic Value Table” available at <a href="http://coinflation.com" rel="nofollow">Coinflation.com</a>.David Wozneyhttps://www.blogger.com/profile/04946651820825706991noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-25217163836040270832010-04-09T14:00:16.961-04:002010-04-09T14:00:16.961-04:00Krugman's comparison of 2010 Greece to post-WW...Krugman's comparison of 2010 Greece to post-WWII America is absurd. US dollars were in high demand after WWII. There was talk of a "dollar shortage" that allowed the US government to inflate and temporarily avoid the consequences until the late 1950s (which is curiously where Krugman ends his analysis). Such is not the case with Greece.<br /><br />Even without being an EMU member, Greece would be in trouble and would not be able to inflate their way out of it. If they still had the drachma and tried to do what the US did, the drachma would have more value in a lavatory than a cash register.Brutus, Esq.https://www.blogger.com/profile/12659682554026190508noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-39256253883396320722010-04-09T13:47:08.461-04:002010-04-09T13:47:08.461-04:00When you strip the varnish down to the bare wood, ...When you strip the varnish down to the bare wood, what P.K. advocates is legalized counterfeiting. You say you owe $100? No problem, just print up another $100. The problem is that the law of supply and demand are immutable. The more of something that there is, the less it's worth. That includes Federal Reserve Notes, and no amount of governmental prestidigitation can alter it.Bryanhttps://www.blogger.com/profile/01672447584057520986noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-69748338309299524972010-04-09T13:45:42.216-04:002010-04-09T13:45:42.216-04:00I think there's also a distinction to be made ...I think there's also a distinction to be made between inflation and the first derivative, or rate of change of inflation, over time. My economics professor in college made this distinction, and I tend to agree with him. If inflation were truly constant, contracts would reflect that, and the overall distortions of inflation would cancel out over time. That's also why the mild deflationary effect of sound money (as the goods and services increase, but the money supply remains stable) doesn't matter. However, changing inflation distorts the ability of the market to adjust to the overall changing money supply and leads to malinvestment.<br /><br />However, if inflation were held constant, it would lose its manipulative value to governments. Krugman seems to rationalize inflation as if it were constant when in fact the rate of inflation is changing, and that distorts the market.Pandemichttps://www.blogger.com/profile/02315340208949970292noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-26622143281504564612010-04-09T12:47:42.831-04:002010-04-09T12:47:42.831-04:00The problem seems to boil down to the short-term v...The problem seems to boil down to the short-term vs. the long-term. Keynesians tend to focus on the short-term. Most people would admit that expansionary monetary and fiscal policy can have beneficial short-term effects: stopping bank runs and bankruptcies, reflating financial asset prices, lowering real debt burdens etc. But the problems from these actions come about down the road and by then the Keynesians can easily point to other causes as their interventions are no longer the proximate ones. Most people only care about the short-term so it's easy to criticize the "liquidationists" when you see firms failing, mass layoffs, and overwhelming private debt burdens but no one seems to care that it was previous short-sighted policy - and bad decisions by individuals - that caused the problems in the first place and will indubitably cause greater problems in the future.<br /><br />Heroin is a good metaphor; in the keynesian world-view, apparently, it's impossible to over dose so long as wise technocrats are passing out the smack at just the right times, in just the right amounts. Unfortunately, our technocrats just cut the price of the dope and pass it out like candy expecting people to be responsible drug addicts.Unknownhttps://www.blogger.com/profile/02189908593237547910noreply@blogger.com