Go Back   Bloggingheads Community > Diavlog comments
FAQ Members List Calendar Search Today's Posts Mark Forums Read


Diavlog comments Post comments about particular diavlogs here.
(Users cannot create new threads.)

Thread Tools Display Modes
Prev Previous Post   Next Post Next
Old 09-05-2011, 06:13 AM
sugarkang sugarkang is offline
Join Date: Oct 2008
Location: Cali, Small-Govt Liberal
Posts: 2,186
Default Re: Booze and Money (Tim Fernholz & Megan McArdle)

Originally Posted by FatMan View Post
Uh...how is inflation real and CPI an illusion?
Money is only as good as what it buys. Relative to gold/platinum, the dollar has been losing value. It appears the FED has been keeping us in line with CPI, but everything might have gotten cheaper with real wages rising if backed by hard assets.

So, we should let housing prices plunge without doing anything (like, say, a helicopter drop to every taxpayer), leading to an increased real debt load (since money will be tighter because homeowners will have to spend more on debt financing), which would depress household spending further, helping to exacerbate the demand problem. Sign me up!
When houses get cheap enough, people start buying them. The entire home construction market is idle because nobody wants to take a loss on their homes. A helicopter drop is more moral hazard. I'm not saying we shouldn't do that, but what makes you Keynesians so sure?

One can't be Hayekian and Keynesian?

Housing bubble wasn't too terrible.
The current aggregate demand problem is a direct result of the housing bubble.

How much of that will be because of skills deterioration from the fact that we're too busy being afraid of the deficit and non-existent inflation than trying to get to full employment.
I do worry about this.
The mixing of populations lowers the cost of being unusual.
Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

All times are GMT -4. The time now is 05:11 AM.

Powered by vBulletin® Version 3.8.7 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.