Archive for Inflation
Potpourri
==> Oh my gosh, a peer-reviewed publication cited my doctoral dissertation. I am still in shock. Topan and Paun–like me–think Mises makes an invalid argument to establish the apodictic preference for satisfaction sooner rather than later. Jeff Herbener responds. ==> This guy literally lives in the NYU library. ==> Pat Michaels and Chip Knappenberger show […]
Read moreMises Admits That He Was Too Trusting of Governments
I love this from page 780 of Human Action: In dealing with the problems of the gold exchange standard all economists–including the author of this book–failed to realize the fact that it places in the hands of governments the power to manipulate their nations’ currency easily. Economists blithely assumed that no government of a civilized […]
Read moreKrugman: Whether Potential GDP Is Up, Down, or Sideways, It’s More Evidence That I’m Right
Krugman has made such a strategic error in his advocacy for monetary inflation that even his teammates had to rebuke him. But first some context: “Potential GDP” is a mainstream economics concept referring to the maximum sustainable level of (real) GDP. In the standard New Keynesian paradigm, if actual (real) GDP is above potential, you […]
Read moreYglesias vs. Mises on War Inflation Finance
In this intriguing post (since he mostly heaped praise on Ferguson in spite of the latter’s attack on him) Matt Yglesias writes: [T]he moral of [Ferguson’s book discussion of World War I] here is that when it comes to major sovereign states, strict considerations of public finance and the government deficit are not so important. […]
Read moreYes Virginia, Bernanke Is Indeed Driving the Stock Market
In a recent post where I linked to Peter Klein’s commentary on the non-taper, at least one person challenged the idea that the so-called recovery was being fueled completely by Fed inflation. Well, check out the following chart, which plots the Fed’s total assets against the S&P500 index:
Read moreMy Final (We Hope!) Word on Paul Krugman and Inflation Predictions
In my last post, I suggested that Paul Krugman has not been entirely candid with his readers on the issue of how economists from the Keynesian versus rival camps predicted the movement of prices as the recession struck. Yes yes, the Austrian purists don’t like to even talk about this stuff, but it’s Krugman’s only […]
Read moreYet More Sumner Sleight-of-Hand
Here’s a good one. Recently John Quiggin updated a post in response to objections from Market Monetarists, because he had said (initially) that nominal interest rates were a good indicator of the looseness or tightness of monetary policy. The Market Monetarists said that the standard view was that real interest rates were a better indicator, […]
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