Krugman disappoints me and giving such a man the nobel price, makes the price worth less than a turd. This man doesn't have a clue what he is talking about. State intervention has killed America and the American dream! Just look at the unfunded liabilities! Check out the von Mises institute channel for some real economic lessons.
"Boni pastoris esse tondere pecus, non deglubere." It is the duty of a good shepherd to shear his sheep, not to skin them. Tiberius Caesar, (in his Bio. by Suetonius)
Krugman is accused in an article in the July Economist of harking back to Keynesian analysis as the answer to today's crisis. In part yes but Keynes himself did not hark back far enough to an economist whose analysis did lay a solid moral foundation for making a better society. Keynes (now Krugman?) never called into question the fundamental immorality of land and natural resource owners who have the right to collect values they do not create. The "housing" crisis is a land speculation bust.
Krugman is rewriting history by claiming that economists claim wage rates had any thing to do with the stagflation of the 70s. It was purely a result from monetary policy from the fed which is why we used monetary policy to solve the problem of inflation in 1980.
In the early 70s, we were practically at full employment (unemployment was 3.5%). Because workers knew that if they were fired, it would be hard to find a replacement, they could demand higher wages. The only way the companies could cover the higher costs of wages was to increase the price of their products - leaving workers to demand even higher wages, etc. etc. leading to inflation.
printed money is more modern, coins were used during antiquity and through much of the development of modern capitalism. Money being the exchange commodity.
But for most of human history it has been a trading or barter system that pervaded civilized societies.
Pecuniary (financial) comes from the latin pecu, meaning cattle.
Your are right having more money in circulation devalues the money in general.
But this does not forgo deflation in a crisis of capitalism.
Go back and look at the Roman Empire. They debased their coinage reducing the precious metal content, which is an identical action to printing money in this day and age. More money leads to inflation, that's always the case. We aren't in deflation. No measure of the money supply contracted at all. You just saw some short term moves and panic selling which is already starting to reverse. Inflation, here we come.
Krugman disappoints me and giving such a man the nobel price, makes the price worth less than a turd. This man doesn't have a clue what he is talking about. State intervention has killed America and the American dream! Just look at the unfunded liabilities! Check out the von Mises institute channel for some real economic lessons.
karkelkhan 1 year ago
"Boni pastoris esse tondere pecus, non deglubere." It is the duty of a good shepherd to shear his sheep, not to skin them. Tiberius Caesar, (in his Bio. by Suetonius)
mose3 2 years ago
I noticed that no one is even questioning that the pre-Reagan era was far better in terms of real wages, economic equality, and job growth.
gummoboy69 2 years ago 2
Krugman is accused in an article in the July Economist of harking back to Keynesian analysis as the answer to today's crisis. In part yes but Keynes himself did not hark back far enough to an economist whose analysis did lay a solid moral foundation for making a better society. Keynes (now Krugman?) never called into question the fundamental immorality of land and natural resource owners who have the right to collect values they do not create. The "housing" crisis is a land speculation bust.
ourearthhome 2 years ago
But bejleeru: did the romans reduce the real value of the coin first, or they responded doing so to a previous inflation?
Malaior 2 years ago
Krugman is damn sexy, biatch!
Slimdawgc 2 years ago 3
Krugman is rewriting history by claiming that economists claim wage rates had any thing to do with the stagflation of the 70s. It was purely a result from monetary policy from the fed which is why we used monetary policy to solve the problem of inflation in 1980.
benjleeru 2 years ago
Here's the argument he was using:
In the early 70s, we were practically at full employment (unemployment was 3.5%). Because workers knew that if they were fired, it would be hard to find a replacement, they could demand higher wages. The only way the companies could cover the higher costs of wages was to increase the price of their products - leaving workers to demand even higher wages, etc. etc. leading to inflation.
defghik 2 years ago
I know the argument he was using. He was wrong. The inflation was purely the result of printing money.
benjleeru 2 years ago
Both of these things contributed, but were not limited to these factors.
really12345 2 years ago
there is no inflation without printing of money. Thousands of years of monetary history confirms this.
benjleeru 2 years ago
"Thousands of years"
printed money is more modern, coins were used during antiquity and through much of the development of modern capitalism. Money being the exchange commodity.
But for most of human history it has been a trading or barter system that pervaded civilized societies.
Pecuniary (financial) comes from the latin pecu, meaning cattle.
Your are right having more money in circulation devalues the money in general.
But this does not forgo deflation in a crisis of capitalism.
really12345 2 years ago 2
Go back and look at the Roman Empire. They debased their coinage reducing the precious metal content, which is an identical action to printing money in this day and age. More money leads to inflation, that's always the case. We aren't in deflation. No measure of the money supply contracted at all. You just saw some short term moves and panic selling which is already starting to reverse. Inflation, here we come.
benjleeru 2 years ago