tag:blogger.com,1999:blog-2761684730989137546.post2508071292892250375..comments2024-03-28T20:28:01.733-04:00Comments on Mike Norman Economics: Primer: Quantity Theory Of Money — Brian Romanchukmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2761684730989137546.post-61086022659496022662021-09-01T22:39:08.627-04:002021-09-01T22:39:08.627-04:00“If we handed out 1 dollar for every monkey that f...“If we handed out 1 dollar for every monkey that flew out of Joe Bidens ass,..,”<br /><br />Same thing…Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-28664837264220060202021-09-01T22:37:41.413-04:002021-09-01T22:37:41.413-04:00“ if the Fed printed and handed out $100k worth of...“ if the Fed printed and handed out $100k worth of $100 bills to every household”<br /><br />So ther are 110m households in the US… Then the Fed would fall under its legal requirement to maintain a 7B equity/residual so it can’t happen…will never happen…<br /><br />Why talk about it? <br /><br />Art degree?Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-72804472735731356612021-08-31T16:32:39.523-04:002021-08-31T16:32:39.523-04:00Correction: Steve's site is interfluidity.com,...Correction: Steve's site is interfluidity.com, not "interfluitity.com".Ahmed Fareshttps://www.blogger.com/profile/07105255828394485657noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-35903463353058882132021-08-31T16:30:27.935-04:002021-08-31T16:30:27.935-04:00Steve Randy Waldman (interfluitity.com) has a good...Steve Randy Waldman (interfluitity.com) has a good take on this. He responds to this commenter's question:<br /><br /><i>...it is not clear to me that it is well understood why inflation sometimes can be seen in consumer goods and sometimes is manifested in "asset price inflation". Do you have any ideas on this mechanism? I know some people deny there is such a thing as "asset price inflation". Do you have a theoretical basis for your ideas in this area?</i><br /><br />Steve's answer:<br /><br /><i>I have a very simple answer to this question: Follow the money. Whether an economy generates asset price inflation or consumer price inflation depends on the details of to <b>whom</b> cash flows. In particular, cash flows to the relatively wealthy lead to asset price inflation, while cash-flows to the relatively poor lead to consumer price inflation.<br /><br />Why? In Keynesian terms, poorer people have a higher marginal propensity to consume. The relatively poor include people who are cash-flow constrained — that is they cannot purchase what they wish to purchase for lack of green, so their marginal dollar gets immediately applied to the shopping list. Also, poorer people may be different, there may be a correlation between poverty and disorganization, lack of impulse control, inability to defer gratification etc. Think of Greg Mankiw's Spenders/Savers model.</i><br /><br />Link to article: <a href="https://www.interfluidity.com/posts/1256656346.shtml" rel="nofollow">Asset inflation, price inflation, and the great moderation</a>Ahmed Fareshttps://www.blogger.com/profile/07105255828394485657noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-14481805173128582132021-08-31T14:12:37.746-04:002021-08-31T14:12:37.746-04:00So if the Fed printed and handed out $100k worth o...So if the Fed printed and handed out $100k worth of $100 bills to every household in the US, there's some doubt as to whether that would cause excess inflation????Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.com