The Economics of Deflation (by Jörg Guido Hülsmann) - Introduction to Austrian Economics, 8of11

Find the whole series here: http://vforvoluntary.com/austrian-economics

Recorded September 2005, Klampenborg - Denmark.

Courtesy of Copenhagen Institute and Liberator.
http://coin.dk/
http://liberator.dk/

Download podcasts of this lecture series:
1 to 6 -- http://www.mediafire.com/?5r261ir33f1jo0f
7 to 11 -- http://www.mediafire.com/?jf51brw5qqwpr1i

Jörg Guido Hülsmann
http://wiki.mises.org/wiki/J%C3%B6rg_Guido_H%C3%BClsmann

Ludwig von Mises Institute
http://mises.org/

FULL EDIT AND POSTING PERMISSION GRANTED BY LIBERATOR.DK - 3/15/10

Category:

Education

Tags:

• deflation
• gold
• profit
• savings
• hoarding
• money
• investment
• economic
• growth
• jorg
• guido
• hulsmann
• Jörg
• Guido
• Hülsmann
• introduction
• austrian
• economics
• liberator.dk
• denmark

[jmjargon]

Is it me or does he kind of not make sense around 28:30

[Nielsio]

@jmjargon Another lecture that goes into this topic is 'Money And Prices (by Joseph T. Salerno)'. Maybe it's explained understandably for you in that one.

[jmjargon]

@Nielsio I just mean that in his scenario the price falls by 20%, yet apparently one would be willing to work 50% longer? And then he says that 2 oz of silver can buy 1.5 hours whereas it used to buy 2, when on the board it says it used to buy 1. I understand the concept but feel like his math doesn't work there.

[Nielsio]

@jmjargon Yes, he meant "it used to buy only 1".

The reason the price changes of labor versus tomatoes don't have to be of the same proportion is because tomatoes are just one good of many. Also, he is just one worker of many. Just because some are willing to work 50% longer for the same doesn't mean all goods will fall by 50%.

That would be my answer. If that's not satisfying you could ask in the Austrian economics Reddit (linked from my channel).

[KraljevicPavle]

Hulsmann is so hardcore, he's got a money clip

Fucking smooth

[Xerriva]

These lectures are great, cheers nielsio!

[jmjargon]

@Nielsio thanks I get it better now

[phroto13]

@yjfoo23 can you explain to me what the difference between the ideas of "real terms" and "nominal terms"

[yjfoo23]

@Myndir In nominal terms. And in real terms, each shares of successful companies should gain purchasing power even though the stock price does not rise. I think.

[Myndir]

@yjfoo81 Do you mean the stock index in nominal or real terms?

[lilbromarky1]

31 minutes is the gusto.