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Anyway, now that we've cleared up that the Fed has control over the money supply,
Anyway, now that we've cleared up that the Fed has control over the money supply,
actually inflation has been a huge problem everywhere and forever. Bernanke has demonstrated he has no idea what the economic future will be and so no idea what the inflation rate will be. Let's not forget the housing bubble was just another episode in inflationary history.
Anyway, now that we've cleared up that the Fed has control over the money supply,
actually inflation has been a huge problem everywhere and forever. Bernanke has demonstrated he has no idea what the economic future will be and so no idea what the inflation rate will be. Let's not forget the housing bubble was just another episode in inflationary history.
Inflation hasn't been a huge problem except in the 70s. Even then it was mostly oil shocks. Bernanke doesn't need to know the future. The housing bubble had nothing to do with inflation. You're talking garbage.
Dramatically rising home prices had nothing to do with inflation?Anyway, now that we've cleared up that the Fed has control over the money supply,
actually inflation has been a huge problem everywhere and forever. Bernanke has demonstrated he has no idea what the economic future will be and so no idea what the inflation rate will be. Let's not forget the housing bubble was just another episode in inflationary history.
Inflation hasn't been a huge problem except in the 70s. Even then it was mostly oil shocks. Bernanke doesn't need to know the future. The housing bubble had nothing to do with inflation. You're talking garbage.
In the first place, home prices have fallen a lot over the past five years, and the in the second place Bernanke's words were that he didn't have a 'precise read' on what future economic conditions were going to be. Dang, sometimes it seems people believe Bernanke's all powerful like they once thought GW Bush was...Dramatically rising home prices had nothing to do with inflation?...Bernanke doesn't need to know the future. The housing bubble had nothing to do with inflation. You're talking garbage.
...What the hell are you talking about, control happiness? Seriously, what the fuck are you talking about...
...What the hell are you talking about, control happiness? Seriously, what the fuck are you talking about...
Your original claim was that the housing bubble had noting to do with inflation. The housing bubble was characterized by rising housing prices. Falling housing prices are the result of the bubble popping, so your response has no relation to my argument against your claim. So yes, I was correct. The housing bubble, contrary to what you say, was characterized by inflation in the form of rising prices in housing and the related sectors.In the first place, home prices have fallen a lot over the past five years, and the in the second place Bernanke's words were that he didn't have a 'precise read' on what future economic conditions were going to be. Dang, sometimes it seems people believe Bernanke's all powerful like they once thought GW Bush was...Dramatically rising home prices had nothing to do with inflation?...Bernanke doesn't need to know the future. The housing bubble had nothing to do with inflation. You're talking garbage.
Your original claim was that the housing bubble had noting to do with inflation. The housing bubble was characterized by rising housing prices. Falling housing prices are the result of the bubble popping, so your response has no relation to my argument against your claim. So yes, I was correct. The housing bubble, contrary to what you say, was characterized by inflation in the form of rising prices in housing and the related sectors.In the first place, home prices have fallen a lot over the past five years, and the in the second place Bernanke's words were that he didn't have a 'precise read' on what future economic conditions were going to be. Dang, sometimes it seems people believe Bernanke's all powerful like they once thought GW Bush was...Dramatically rising home prices had nothing to do with inflation?
Milt is a great apologist for BIG CAPITAL, that is true.
How's his economic theories working out in real life?
Inflation is an increase in the general level of prices. When housing prices or petrol prices rise, that's an increase in relative prices.
Milt is a great apologist for BIG CAPITAL, that is true.
How's his economic theories working out in real life?
It would be nice if someone actually tried them.
Then maybe we would know more
Inflation is an increase in the general level of prices. When housing prices or petrol prices rise, that's an increase in relative prices.
That's BS, although technnically true. More importantly, when you have inflation in a huge huge sector of the economy, like we had in housing, and stable prices elsewhere, you have a huge inflationary bubble that can and did sink the economy.
The lesson is that huge inflation across a huge sector of the economy means there is significant inflation in the entire economy and an inflated bubble that needs to be deflated!
Sorting this out, on the Planet Earth I said "home prices have fallen a lot over the past five years" and the only place anyone said "the housing bubble had noting to do with inflation" was on--Your original claim was that the housing bubble had noting to do with inflation......home prices have fallen a lot over the past five years...Dramatically rising home prices had nothing to do with inflation?
Right. They got all kinds of price indexes depending on what set of prices are important. Technically real estate prices aren't supposed to be in the CPI but IIRC they fudge them in with some kind of "renter's equivalent cost" factor....Inflation is an increase in the general level of prices. When housing prices or petrol prices rise, that's an increase in relative prices.
That's the definition of inflation. It's not technically true, it's just plain regular old true.
What do you understand by "inflation"?
That's the definition of inflation. It's not technically true, it's just plain regular old true.
actually there are many definitions that make the dictionary
What do you understand by "inflation"?
I like the general price level definition. The CPI would have showed huge inflation if the housing bubble had been included.
Actually, "the housing bubble had nothing to do with inflation" is what DSGE said. That was the comment I was responding to. So its not my fault that you did not read the argument I was responding to when you interjected yourself into the conversation.Sorting this out, on the Planet Earth I said "home prices have fallen a lot over the past five years" and the only place anyone said "the housing bubble had noting to do with inflation" was on--Your original claim was that the housing bubble had noting to do with inflation......home prices have fallen a lot over the past five years...
No it isn't. Maybe in the economic community you follow, but it is simply not true to say that is what everyone uses.That's the definition of inflation. It's not technically true, it's just plain regular old true.
actually there are many definitions that make the dictionary
That's the one that everybody in the economics community uses.
If a good rises in price, other goods must fall in price unless there is inflation caused by an expansion of the money supply to fuel the higher prices. If you have $100 to spend, and you spend $25 on four different items, if one of the items increases in price you will not be able to afford all of the items as before, so you will have to buy less of another item, thus reducing demand for that item and lowering its price.The CPI can increase even if it's just relative prices changing. That's why you'll often hear the Fed talking about "core" CPI or "weighted median" or "trimmed mean". That's stuff that they do to the aggregate so that they can strip away relative price changes. So what the CPI is showing you isn't necessarily inflation.
