UPDATE: Sorry, I forgot to include the money (ha ha) quote, to explain the purpose of Scott’s post.
Scott Sumner thinks he can play me like a game of classic Donkey Kong:
Some days I want to just shoot myself, like when I read the one millionth comment that easy money will hurt consumers by raising prices. Yes, there are some types of inflation that hurt consumers. And yes, there are some types of inflation created by Fed policy. But in a Venn diagram those two types of inflation have no overlap.
I know, I know…You had to re-read that a few times, just to reassure yourself that Scott is now saying that what people have in mind by the danger of inflation is literally impossible. You may even have spent 5 minutes trying to Google up a graph of Zimbabwe’s nominal GDP. (I tried already. No dice.)
UPDATE: Scott goes on in the post to say:
So here’s my plan. Beginning tomorrow, November 1st, I will ban all discussion of inflation from the comment section. I won’t respond to questions on inflation. (God knows how Bob Murphy will react to this—something tells me it won’t make me look good.)
Relax kids. As I’ve told you many times, Scott Sumner can’t possibly believe this stuff. He has to be laughing his head off that he actually has half of his commenters agreeing that we should stop using the term “inflation” on a blog devoted to monetary policy, indeed a blog literally named “Money Illusion.”
Don’t take my word for it. In the comments Scott–like a serial killer writing clues on the wall with the victim’s blood–comes out and admits this is all a big joke. One commenter said, “I’m very excited to see what Bob Murphy will say.” To this Scott replied, “The main reason I did this post, which was about 50% tongue-in-cheek and 50% serious, was to get his reaction. It better be good.”
I’m not falling for it, Sumner.
P.S. For those who want to pretend that Sumner is seriously advocating this idea, there’s this paper by Steve Horwitz on how infl–I mean, you-know-what, can lead to problems.