tag:blogger.com,1999:blog-2761684730989137546.post4558649272074108436..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: Bill Mitchell — US labour market tepid – there is plenty of scope fiscal expansionmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2761684730989137546.post-47615159337650410992018-05-07T14:31:49.666-04:002018-05-07T14:31:49.666-04:00https://www.google.com/amp/s/www.bloomberg.com/amp...https://www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2017-09-20/yellen-brushes-aside-inflation-mystery-as-fed-eyes-rate-hike<br /><br />“Federal Reserve Chair Janet Yellen acknowledged that the fall in inflation this year was a bit of a “mystery”<br /><br />“Mystery” means you don’t know what it is...<br /><br />“We don’t understand gravity it’s been a mystery!” Means you don’t know what gravity is...<br />Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-31059171083837835472018-05-07T14:23:31.992-04:002018-05-07T14:23:31.992-04:00There is no ‘inflation’ except as the monetarists ...There is no ‘inflation’ except as the monetarists define it..Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-41934032808863415012018-05-07T10:15:01.169-04:002018-05-07T10:15:01.169-04:00It's not exactly true that "we don't ...It's not exactly true that "we don't know what inflation is."<br /><br />The correct way to state this is we know know exactly what inflation is in a way that we could write an equation that covers it and allows for accurate forecasting — because there are so many contingent factors involved in change in price level. <br /><br />That is to say, change in price level is contingent on many factors rather than determined by a few parameters and variables, while holding everything else equal (cet. par.). It's complex, and this is no model with accurate forecasting power.<br /><br />Quantity threory of money blew up, and so has the assumption of NAIRU and Phillips curve.<br /><br />So what Yellen is saying is that the Fed doesn't have a very accurate model. <br /><br />This is important since central banks are suppose to have the best models and data, owing to their privileged position in the economy. So the assumption is that if the Fed doesn't have a great model, then no one else does. In that case, we really don't know what inflation is.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-88251225920747848092018-05-07T09:45:51.964-04:002018-05-07T09:45:51.964-04:00The highest ranked corporate bank stooge ...
Ther...The highest ranked corporate bank stooge ...<br /><br />There, fixed it for you.Noah Wayhttps://www.blogger.com/profile/12012500819097539976noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-21952425441542911372018-05-07T08:24:25.225-04:002018-05-07T08:24:25.225-04:00“society demands that inflation be forecast”.
The...“society demands that inflation be forecast”.<br /><br />The highest ranked economist in the USA Janet Yellen just said they don’t really know what inflation is... so how can you forecast something that you don’t even know what it is????<br />Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com