Inflation is virtually always a money supply problem. Milton Friedman taught us this decades ago as have myriad Austrian economists such as Mises, Sennholtz, Hayek, and others.
A book recommendation for all - 'The Price of Time'. It documents well the history of interest rates and money over centuries of time. The US is not unique. We ha…
Inflation is virtually always a money supply problem. Milton Friedman taught us this decades ago as have myriad Austrian economists such as Mises, Sennholtz, Hayek, and others.
A book recommendation for all - 'The Price of Time'. It documents well the history of interest rates and money over centuries of time. The US is not unique. We have not rewritten the laws of economics just because we have held super power status for seven decades. It is foolish to believe we can just print & spend endlessly without consequence.
All of those hacks may have had something of value to contribute in a gold standard or hard currency regime. In case you hadn’t noticed, that ship sailed 50 years ago with the Nixon shock and the abandonment of Bretton Woods. Do try to keep up.
eg is right. As per usual as Keynes said: “Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.” Orthodoxy is the bane of every area of human endeavor and especially in economics because it is the end of actual looking at a subject.
It's "foolish to believe" anyone ever said that we can just "print and spend endlessly without consequence!" You're just parroting bs orthodoxy "propaganda, which demonstrates your lack of knowledge on the subject. The very purpose of a currency is to mobilize resources. As the real economist, John Maynard Keynes put it, "anything we can physically do, we can financially do!" Maybe that's too much for you to comprehend? Those paid liars your referencing, are just repackaging classical economics that Keynes shredded in his 1936 book "The General Theory of Employment, Interest, and Money" in 19936. After Keynes death in 1946 they were able to crawl out from under their rocks! With massive financial wealth backing they were able to purge real economics from university teaching.
Name the time that the "money supply was the cause of inflation!"
US is unique from other countries that borrow in foreign currencies, fix their currency or are currency users'. Maybe you should try educating yourself on the meaning of countries that have "monetary sovereignty. When the US Federal Reserve increases interest rates, countries who borrow in US dollars see their domestic currency go "down" and the cost of borrowing US dollars go "up," crippling their economy. They don't "issue US dollars," "the US does!" The US does not "borrow" in foreign currencies or "fix it's exchange rate." Big difference.
Neither are we, but we're also not advocates for creating debt unnecessarily like the "national debt".
And besides, the REAL problem as Steve Keen has shown is ever rising PRIVATE and corporate debt NOT government "debt". The latter is just a side show. Please get with the real program for the real resolution of the real problem.
Inflation is virtually always a money supply problem. Milton Friedman taught us this decades ago as have myriad Austrian economists such as Mises, Sennholtz, Hayek, and others.
A book recommendation for all - 'The Price of Time'. It documents well the history of interest rates and money over centuries of time. The US is not unique. We have not rewritten the laws of economics just because we have held super power status for seven decades. It is foolish to believe we can just print & spend endlessly without consequence.
All of those hacks may have had something of value to contribute in a gold standard or hard currency regime. In case you hadn’t noticed, that ship sailed 50 years ago with the Nixon shock and the abandonment of Bretton Woods. Do try to keep up.
Great Society and war spending forced Nixon on the gold standard. Ending it has not been good for the US.
eg is right. As per usual as Keynes said: “Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.” Orthodoxy is the bane of every area of human endeavor and especially in economics because it is the end of actual looking at a subject.
Actually, I thought Uncle Miltie said inflation was always a monetary phenomena.
Monetary phenomena CAN BE a Money/Goods imbalance from too much money or too few GOODS.
Can you say unlawful (Money and Goods) SANCTIONS??
Sanctions, by governments, make complete chaos of the notion of national economic freedom. It ain't your country anymore.
Inflation caused by sanctions and too few goods will ALWAYS manifest in monetary terms.
Praise for Uncle Miltie's conclusion.
I prefer Von Mises definitions on inflation.
Theory of Money and Credit ..... pg. 126.
The Money Apprentice.
Money supply is a monetary problem. Government spending is a fiscal problem.
Disproven orthodoxy. Please look and re-think.
It's "foolish to believe" anyone ever said that we can just "print and spend endlessly without consequence!" You're just parroting bs orthodoxy "propaganda, which demonstrates your lack of knowledge on the subject. The very purpose of a currency is to mobilize resources. As the real economist, John Maynard Keynes put it, "anything we can physically do, we can financially do!" Maybe that's too much for you to comprehend? Those paid liars your referencing, are just repackaging classical economics that Keynes shredded in his 1936 book "The General Theory of Employment, Interest, and Money" in 19936. After Keynes death in 1946 they were able to crawl out from under their rocks! With massive financial wealth backing they were able to purge real economics from university teaching.
Name the time that the "money supply was the cause of inflation!"
US is unique from other countries that borrow in foreign currencies, fix their currency or are currency users'. Maybe you should try educating yourself on the meaning of countries that have "monetary sovereignty. When the US Federal Reserve increases interest rates, countries who borrow in US dollars see their domestic currency go "down" and the cost of borrowing US dollars go "up," crippling their economy. They don't "issue US dollars," "the US does!" The US does not "borrow" in foreign currencies or "fix it's exchange rate." Big difference.
Keynes would be aghast at what the US government and the Fed are doing. Keynes was not a proponent of ever-rising debt.
Neither are we, but we're also not advocates for creating debt unnecessarily like the "national debt".
And besides, the REAL problem as Steve Keen has shown is ever rising PRIVATE and corporate debt NOT government "debt". The latter is just a side show. Please get with the real program for the real resolution of the real problem.