Clarke and Dawe - Quantitative Easing

"Avery Largenumber, Economist" Originally aired on ABC TV's 7.30: 20/10/2011
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• Category

  News & Politics

[CurtHowland]

Inflation is an increase in the quantity of currency. So no, inflation is not running 1.66% per year.

Since you're talking about increasing in consumer prices, even that's not 1.66% per year, since those "official" numbers are deliberately doctored and altered to avoid those consumer items which are increasing in price the greatest amounts.

The use of "DUMB" on your name is very good. You have described yourself perfectly. Go back to sleep now, your masters are well happy with your performance.

[Aaron Sandford]

laughing so hard

[pthompson108]

If you can't dazzle them with your brilliance, then baffle them with your bullshit.

Well done guys.

[dukingtheraven]

Historically the US economy grows at 3% a year. I don't have all the data points, but I am pretty certain this has been true since WWI and perhaps earlier. So have 3% inflation for a period of time, in excess of the normal growth rate, is unlikely to contribute to any long term price increases. The trick is to keep inflation in check. If the money supply grows more slowly than production you get price deflation. The planning of all economic decisions is potentially fraught with peril.

[ravemastaj]

So what you are saying is that, when a nation has negative or 1% growth, that an inflation rate of 3% would be detrimental?

I'd like to know the metric that decides when inflation becomes terrible instead of just background noise.

[dukingtheraven]

Inflation occurs when the money in circulation grows faster than the productivity of a nation. If productivity of a nation grows 3% a year, and the money supply grows 3%, then there is no inflation assuming the nation is a closed system. The existence of other nations and their financial and monetary habits has some effect on the nation in question.

[NoName NoFame]

i don't know who koshie is, but not having a clue is 99% of americans unfortunately :-(

[Wal Bertross]

Kudos! Great to see some Australians who actually have a fucken idea about what is happening in the world economy....most Aussies sit in front of their TV and think Koshie was placed here by god to tell us how the economy works.

[Pigeonhousestreet]

If you can't convince them, confuse them

[MrConradoK]

amazing!