fromderinside
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Yeah, because that hyperinflation you've been promoting is going to happen in 2010 because we've printed so much money.
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Greece still doesn't want to behave
- Thread starter Loren Pechtel
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Yeah, because that hyperinflation you've been promoting is going to happen in 2010 because we've printed so much money.
Do you also you launch into unrelated rants disconnected from reality when the drive thru guy asks "you want fries with that? or is this just a TFT thing?
Toni
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fromderinside
Mazzie Daius
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OK. So why does hyperinflation not take place when the US prints money if not according to Keynesian Theory?
just askin' - again
Inflation is caused by money in excess of the demand for it. You can get inflation from the economy speeding up without any printing going on. On the flip side, printing that doesn't exceed the demand doesn't cause inflation. That's what's happening in the US now--QE is simply adding money to the economy to make up for the slow movement of money.
Hyperinflation is caused by the rampant use of the printing press, not merely the use of the printing press.
Will Wiley
Veteran Member
The USD is used not only in the USA but throughout the world to buy many things, such as commodities. If the world began to use something rather than USD then all those dollars would have to find a home in far fewer things, and that would cause inflation. maybe hyper inflation.
ronburgundy
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I didn't merely defer to Keynes. Dismal claimed claimed that taxing the rich violated core principles of Keynes' theory, so it was relevant to point out the falseness of this claim. But in the process, I explicated the simple logic that connects taxing the rich to increasing aggregate demand. That is what science does. It explicates the causal mechanisms. The fact is that the variables are way to confounded in the real world for direct empirical data to clearly test the causal relationship between taxing the rich and economic growth. Thus a more rational approach is to break down the relationship into the critical assumptions and evaluate those. That is what I did.
Do people increase purchase of perishable goods when their buying power goes from below their basic needs to at or above their basic needs? Yes. Do people decrease the purchase of perishable goods when their buying power goes from way beyond their need or desires for goods to slightly less way beyond their needs and desires? No. Although all relevant data supports, the data is largely superfluous since they are logical truisms. People cannot consume what they cannot pay for, and a loss in wealth that doesn't reduce one's ability to pay for things that one actually wants cannot reduce consumption.
Thus, taking from the latter people with more wealth than they need to meet their consumption desires, and giving to the former with insufficient wealth to meet their basic needs, will inherently increase purchase of perishable goods and aggregate demand which inherently increases employment, which further increases consumption, which increases company profits, all of which means economic growth in a bottom up fashion.
This doesn't speak the situation in Greece. It merely speaks to the more general issue of whether growth can be stimulated by redistribution highly unequal wealth from the uber rich with excessive savings (which includes savings in form of many non-perishable luxury goods) to people that will immediately spend all additional wealth on perishable goods. The fact that this obvious reality is consistent with Keynes is not critical beyond showing that Keynes was not a complete idiot, since it is consistent with the economic theory of anyone that is not a complete idiot who denies basic reality.
bilby
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Good for you. Would you like a round of applause?
ronburgundy
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No, I'd like you to make thoughtful posts and at least minimal effort to understand the arguments, rather than mindless strawman mischaracterizations.
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bilby
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tupac chopra
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Yes, bad luck by the look of things
untermensche
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That is a conclusion you have made first and are desperately trying to prove.
But if you had actually ever read Keynes and had real disagreements you could post those.
Austerity is actually the anti-Keynesian test case.
It is what the anti-Keynesians have said will produce prosperity.
Only a blind man can't see how wrong they are.