Reader Clonal hatipped me this blog at
EconProph that really lays some wood on the dogma of Monetarism and the monetarist view of inflation that I think is very good. On the same topic Warren Mosler put out a pretty substantial
post this morning along the same lines that was cross-posted at
PragCap.
Monetarism is finally starting to take some well deserved hits. About time imo.
matt:
ReplyDeletehttp://www.youtube.com/watch?v=s930m-a3vmA
this way you can read and listen to nice music at the same time.
You also have to look at Friedman's intellectual dishonesty when he puts forth his thesis in "Money Mischief" as detailed by Art Shipman in "The Greatest Scam of the 20th Century"
ReplyDeleteThe offending section of "Money Mischief" that Art refers to is pages 195-199
ReplyDeletegold standard mentality or policy will help you find hyperinflation a lot faster.
ReplyDeleteeven though we were off the gold standard we were not of the gold standard mentality with Reagan years
Matt, did you or anyone here recently make a post detailing a different reason for inflation of late 70's / early 80's other than the volcker rise in interest rates?
ReplyDeleteI think there was a point made about OPEC controling prices etc.
My mind inprinted that the Volcker rise was just either a nonsense knee jerk reaction having no consequence to what was underlying with high prices ( oil ) or just plain superfluous.
ok it was the infaltion post i think
ReplyDeletegoog yes it was at that "Infaltion" post. Just FF to the 13:00 mark and Warren explains it. I didnt live through that time so I dont have a lot of insight there, well yes I did live but was listening to the Australian Angus and Malcolm Young not Bill Mitchell at that time...
ReplyDeleteIt may turn out to be valuable info. as yes as you surmise, when the Fed raised interest rates back then in response to the actions of the oil cartel it was pushing on the accelerator when it thought it was putting on the brakes. So if they end up going this way again (seems remote but anything is possible with this crew, and historic patterns seem to keep re-appearing in all this) it will be time to get out of bonds (perhaps short them) and perhaps all-in into stocks as these morons will keep raising interest rates thinking they are slowing things down and it will have the opposite effect and will create a boom else equal....
Resp,