tag:blogger.com,1999:blog-2761684730989137546.post6574096212694268752..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: Bill Mitchell — Don’t mention the war! er the Troika …mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-18131601081589052622015-02-27T07:30:47.470-05:002015-02-27T07:30:47.470-05:00Neil to me that is like saying that how much money...Neil to me that is like saying that how much money is wagered on a team can effect the outcome of the game...<br /><br />The way I look at it, it is always "about price not quantity..." and "all prices are necessarily a function of what the govt pays for things and what they let their banks lend against things...."<br /><br />These assertions are either true or they are not... they cannot be selectively applied (if they are true.... which I think they are...)<br /><br />If the Greeks were to start with 1 drachma = 1 EUR, and immediately Greek exporters started to reduce their prices (in EUR) to EUR export customers, then the drachma would go down immediately..<br /><br />Likewise if they immediately started to pay more for EUR products imported into Greece, the drachma would go down vs EUR...<br /><br />Its "about price not quantity..." (to me)...<br /><br />rsp,Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-82222556837582114982015-02-27T01:36:57.906-05:002015-02-27T01:36:57.906-05:00Matt,
Then you'd be wrong.
It is just a nat...Matt,<br /><br />Then you'd be wrong. <br /><br />It is just a natural consequence of a public monopoly and a functional market. Supply is controlled by the government, and through the banks. <br /><br />Restrict that system from supplying the currency and massively increase the demand and the price will change. <br /><br />Run through the transactions by hand. Find out how any currency trader can *settle* at 10pm in a new currency. <br /><br />Funds to settle are not a given. You have to get them from somebody.NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-77319337463956992552015-02-26T16:17:07.690-05:002015-02-26T16:17:07.690-05:00"What is the current volume (supply) of new D..."What is the current volume (supply) of new Drachma in the foreign exchange markets? Answer: zero – it doesn’t exist.<br />If the Greek government restricted its supply..."<br /><br />This (to me) is monetarism.... rspMatt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-88005572118472349502015-02-26T13:45:26.388-05:002015-02-26T13:45:26.388-05:00"Radical left!""Radical left!"Ignaciohttps://www.blogger.com/profile/16082008115484199316noreply@blogger.com