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Its precisely due to the policies in place that I felt stagflation was the only likely outcome.
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Stagflation makes deflation look like a great economy.
deflation is the worst of all possible worlds since tomorrow everything will be cheaper; therefore there is no reason to buy anything at all today.
Ok...so you just showed your lack of knowledge about economic principles and conditions.
Good to know.
I suggest you read some more before you come back.
No inflation? The money supply has increased over 9 trillion dollars in 11 years. Name a time in our history that matches up.
No inflation? The money supply has increased over 9 trillion dollars in 11 years. Name a time in our history that matches up.
Inflation means price inflation. It has for a hundred years. It is what everyone means by inflation. Monetary inflation, and increase in the money supply, is called what? Oh yeah, monetary inflation. The word inflation in the definition of stagflation means price inflation. It always has.
Try using the same definitions of terms that everyone else does, instead of making up your own language. It will help you understand what other people are talking about and help you communicate.
This may explain why you are so confused about economics.
Price increase is a result of inflation, which is really increases in the money supply. Welcome to econ 95
Are you really this ignorant of the basics? Really?
The total money supply has increased but the rate of increase has remained nearly the same for 20 years.No inflation? The money supply has increased over 9 trillion dollars in 11 years. Name a time in our history that matches up.
As a percentage? Umm, the 60's, 70's 80's and 90's were all higher.
File:Changes in US Money supply.svg - Wikipedia, the free encyclopedia
http://upload.wikimedia.org/wikipedia/commons/c/c4/Components_of_US_Money_supply.svg
The Money Supply, M1,M2,&M3 has been falling in 2012. M1 is only slightly higher than in Jan 2009; M2 and M3 are both lower.Price increase is a result of inflation, which is really increases in the money supply. Welcome to econ 95
Money Supply Charts
So, maybe it's not stagflation but just stagnation. Still not good, and eventually all that extra money will result in inflation.
So, maybe it's not stagflation but just stagnation. Still not good, and eventually all that extra money will result in inflation.
That's not necessarily true. It would be nice if it was true (assuming the Fed just let that take its course instead of trying to suck the money out of the system rapidly), but it's not.
So, maybe it's not stagflation but just stagnation. Still not good, and eventually all that extra money will result in inflation.
That's not necessarily true. It would be nice if it was true (assuming the Fed just let that take its course instead of trying to suck the money out of the system rapidly), but it's not.
That is the the while point, isn't it, will they manage to pull all that back, how fast can they do it, and will they accomplish it with the right timing.
So this whole thread really comes down to whether one believes John Williams unpublished, unverifiable measure of inflation where he takes the BLS CPI, estimates an "error" and adds it into the CPI, or you believe all of the other verifiable, published, and independently consistent measures of inflation, including the BLS CPI, MIT's whatever that it, , and Federal Reserves PCE.
That's not necessarily true. It would be nice if it was true (assuming the Fed just let that take its course instead of trying to suck the money out of the system rapidly), but it's not.
That is the the while point, isn't it, will they manage to pull all that back, how fast can they do it, and will they accomplish it with the right timing.
It would be desirable if they didn't pull it back too quickly, but I have my doubts about that. Bernanke has already said high unemployment doesn't bother him.
The idea that high unemployment is the "new normal" becomes fashionable during every recession, and it turns out to never be true. People were making the same arguments you are during the late 1930s, then the war came an unemployment dropped to almost zero. It wasn't purely a war effect either, as unemployment didn't skyrocket at war's end.
The idea that high unemployment is the "new normal" becomes fashionable during every recession, and it turns out to never be true. People were making the same arguments you are during the late 1930s, then the war came an unemployment dropped to almost zero. It wasn't purely a war effect either, as unemployment didn't skyrocket at war's end.