11 Nov 2015


Krugman, Potpourri, Scott Sumner 2 Comments

==> I’m tied up on this business trip, so somebody please explain to Scott Sumner the difference between time deposits and demand deposits.

==> BTW I am tough but I am fair: I think I forgot to blog it at the time, but this Sumner post on Krugman from September was the best takedown I saw.

==> Josiah Neeley bashes Krugman by not only pointing out the problem in his argument, but by citing awkward past posts that undercut today’s argument. Uh, I’m pretty sure that’s my job, Josiah.

==> If the GOP nomination goes to the person who was cutest in 1998, I think we have a winner.

2 Responses to “Potpourri”

  1. David R. Henderson says:

    Bob, Why should someone explain it to Scott. I read his piece. He mentions demand deposits. He doesn’t mention time deposits. Where, specifically, do you think his mistake is?

    • Bob Murphy says:

      David I wouldn’t have been snarky about it except Scott said something about people being stupid on this issue, when it’s clear to me he really doesn’t understand what the quotation was saying (in his post).

      The “investment account” is the way they are describing a time deposit.

      E.g. if I give $1000 to a bank for a one-year CD, nobody says the money stock just went up by $1000. Scott wouldn’t say that is fractional reserve banking.

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