AmazonTania
1 Percenter Wannabe
Deflation is equally as problematic. Especially given the domino effect it can have an the macroeconomic enchilada.
I believe deflation is good. It's better when it's necessary, such as during a recession when prices need to fall. Most people would point out Japan as an example of bad deflation. Outside of a somewhat stagnant GDP, a flat Nikkei average and an economy totally dependent upon exports, I haven't really seen to many indicators of an economy which was 'suffering.' In fact, I remember reading a survey conducted by the Bank of Japan and a vast majority of respondents were very happy when prices fell. Contrary, when they started to notice that prices increase, 'they didn't like it.'
Then again, what do they know. After I eat my dinner I'll try to find the survey and post it here.
The trivial externality you had to concern yourself with under a Gold Standard was a chunk of shinny metal. The externalities you have to face with a fiat standard are flesh and blood human beings.
There are plenty of anecdotal evidence of inflation, but according to Helicopter Ben and the CPI, this is all in our heads. Then again, what do we know...
I'd figured you'd have to be a Chartalist if you weren't a Keynesian. But there is nothing wrong with a Keynesian. We're all Keynesian now.
Well, except for me. There are at least 5 different economic schools of thought I subscribe to. But no, according to progressives if you aren't progressive and Keynesian, than you are obviously far-right and you must be a Con.
As a bond trader, functional finance finally clicked. The US turns over tens of trillions in bonds every year. Year in and year out like clockwork.
I did my MS in economics based on the work of GF Knapp and Abba Lerner. That's when I had my Eureka moment so to speak.
Yeah, I don't think the US has ever paid a bill since the 1920's. It just sells one bond for another.
Trading Currencies is when my 'Eureka' moment happened. It really didn't happen until I started getting involved with commodities. I don't manage Options or Futures accounts. You never know where the market will take you.
Are you supply-side or demand-side?
Your posts make me think you're fence sitting. Seriously.
The inflation metrics. Inflation is an increase in the general price. You can't claim inflation on asset classes or sectors of the economy. That's not inflation.
I agree more with the supply-side, but I do not generally propose solutions such as lower income taxes and capital gains. I propose an economic environment where an economic structure between capital and consumer goods are freely coordinated based on the laws of supply and demand, without the constraints of overbearing government regulation.
So I'm a partial subscriber to the Supply-Side and Free Market economies, but this usually pegs me among the ranks of Austrians and this is sort of fair. Free Market Economies is often compared to Austrian Economics, but the two are nothing alike. Austrian Economics is a set of claims about how markets, the economy, and how the social world works. It's a frame work for economic analysis and not a set of policy conclusions. From the roles of exchange, to the price system and the profit mechanism and the business cycle, I generally agree with Austrians. Also Austrians and Supply-Sides generally agree that it is production that is the key to economic prosperity and consumption is merely a product of what has been produced.
Also I try to keep an framework of independent consciousness, so I also subscribe to a philosophical theory of Objectivism.
So that is four general schools of thought I subscribe to, and they are all different in many ways but they're the same in some. Hope this clears something up at least.