Forgot Password
Pentax Camera Forums Home

Show Printable Version Search this Thread
12-16-2011, 02:23 PM   #1
Veteran Member

Join Date: Oct 2010
Location: Finland
Photos: Albums
Posts: 3,196
NYT/Krugman op-ed: G.O.P. Monetary Madness

And there has, indeed, been a huge expansion of the monetary base. After Lehman Brothers fell, the Fed began lending large sums to banks as well as buying a wide range of other assets, in a (successful) attempt to stabilize financial markets, in the process adding large amounts to bank reserves. In the fall of 2010, the Fed began another round of purchases, in a less successful attempt to boost economic growth. The combined effect of these actions was that the monetary base more than tripled in size.

Austrians, and for that matter many right-leaning economists, were sure about what would happen as a result: There would be devastating inflation. One popular Austrian commentator who has advised Mr. Paul, Peter Schiff, even warned (on Glenn Beck’s TV show) of the possibility of Zimbabwe-style hyperinflation in the near future.

So here we are, three years later. How’s it going? Inflation has fluctuated, but, at the end of the day, consumer prices have risen just 4.5 percent, meaning an average annual inflation rate of only 1.5 percent. Who could have predicted that printing so much money would cause so little inflation? Well, I could. And did. And so did others who understood the Keynesian economics ...

12-19-2011, 04:38 PM   #2
GeneV's Avatar

Join Date: Oct 2008
Location: Albuquerque NM
Photos: Albums
Posts: 9,822
The line between Krugman and MMT is getting harder to define, despite his protests to the contrary. Not that I disagree with him.
12-19-2011, 04:42 PM   #3
jsherman999's Avatar

Join Date: Dec 2007
Photos: Gallery
Posts: 8,232
QuoteOriginally posted by GeneV Quote
The line between Krugman and MMT is getting harder to define, despite his protests to the contrary. Not that I disagree with him.
Magical Mystery Tour?

(or Chartalism?)
12-19-2011, 04:56 PM   #4
GeneV's Avatar

Join Date: Oct 2008
Location: Albuquerque NM
Photos: Albums
Posts: 9,822
QuoteOriginally posted by jsherman999 Quote
Magical Mystery Tour?

(or Chartalism?)
goo goo g'joob

12-19-2011, 08:32 PM   #5
Veteran Member
jeffkrol's Avatar

Join Date: Sep 2006
Location: Wisconsin USA
Photos: Gallery
Posts: 8,434
Interesting history and a quote..............

A Dark Age of macroeconomics (wonkish) -
The answer, I think, is that we’re living in a Dark Age of macroeconomics. Remember, what defined the Dark Ages wasn’t the fact that they were primitive — the Bronze Age was primitive, too. What made the Dark Ages dark was the fact that so much knowledge had been lost, that so much known to the Greeks and Romans had been forgotten by the barbarian kingdoms that followed.

And that’s what seems to have happened to macroeconomics in much of the economics profession. The knowledge that S=I doesn’t imply the Treasury view — the general understanding that macroeconomics is more than supply and demand plus the quantity equation — somehow got lost in much of the profession. I’m tempted to go on and say something about being overrun by barbarians in the grip of an obscurantist faith, but I guess I won’t. Oh wait, I guess I just did.
One of my favorite non-fiction authors, John Ralston Saul, often remarks that the end of the Enlightenment, our time, reflects the end of the feudal age it replaced.
Knowledge in the feudal age was not meant to improve understanding of the world. It was meant to support the status quo. Its purpose was to make sure that things didn’t change, that those with power remained in power.
Whether such knowledge was in tune with the way the world worked or that knowledge improved the lot of society was not a consideration.
A pity we’ve returned to that time.
— Rob Graham

got to love when they throw zimbabwe and Greece in.. neither of which applies to the US..........

Last edited by jeffkrol; 12-19-2011 at 08:47 PM.

  • Submit Thread to Facebook Facebook
  • Submit Thread to Twitter Twitter
  • Submit Thread to Digg Digg
Tags - Make this thread easier to find by adding keywords to it!
attempt, base, inflation, percent
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
NYT: Support Builds for a Plan to Rein In Medicare Costs jolepp General Talk 3 11-27-2011 07:27 AM
The Depression: If Only Things Were That Good (NYT) jolepp General Talk 42 10-12-2011 11:55 PM
Modern Monetary Theory: The Last Progressive Left Standing jeffkrol General Talk 46 09-08-2011 06:20 AM
Modern monetary theory jeffkrol General Talk 41 02-09-2011 10:39 AM
monetary sovereignty plain and simple jeffkrol General Talk 23 01-21-2011 03:59 PM

All times are GMT -7. The time now is 05:01 PM. | See also:, part of our network of photo forums!
  • Red (Default)
  • Green
  • Gray
  • Dark
  • Dark Yellow
  • Dark Blue
  • Old Red
  • Old Green
  • Old Gray
  • Dial-Up Style
Hello! It's great to see you back on the forum! Have you considered joining the community?
Creating a FREE ACCOUNT takes under a minute, removes ads, and lets you post! [Dismiss]