tag:blogger.com,1999:blog-8897997766931633186.post329384502887430995..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: It's Both Supply and DemandBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8897997766931633186.post-86514654062242166812013-03-15T10:57:42.577-04:002013-03-15T10:57:42.577-04:00GDP doesn't measure human welfare.
With a nom...GDP doesn't measure human welfare.<br /><br />With a nominal GDP level target, new environmental regulations would slow the growth of real GDP and result in (higher) inflation for a time. If the regulations were gradually made more an more restrictive, this could be permanent, but likely the economy would settle down on a lower growth path of real income and higher price level.<br /><br />But, people might be better off because they like cleaner air more than the material goods sacrificed. Real GDP is lower, but welfare is enhanced.<br /><br />If people decide to work less, then real GDP will fall. With a nominal GDP level target, this will result in inflation for a time, and a higher price level. <br /><br />If people enjoy the leisure more than the material goods and services sacrificed, then they are better off. Real GDP is lower, but welfare is improved.<br /><br /><br />In my view the nominal GDP level target is still the best alternative when environmental regulation is imposed. It is probably less than ideal when people choose to work less.<br /><br />But I favor rules. And you pick the least harmful rule for a variety of situations. Suggesting that central bankers do what is best is no rule.Bill Woolseyhttps://www.blogger.com/profile/06330232724290161369noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-28662788535462763192013-03-15T08:02:31.650-04:002013-03-15T08:02:31.650-04:00Excellent blogging.
Regarding GDP, I think it sli...Excellent blogging.<br /><br />Regarding GDP, I think it slips a few times especially in regards to pollution. If you grew in the 1950s in Los Angeles, the smog literally choked you at times. Today, 98 percent reduced....<br /><br />The Internet. Gee whiz, I send baby photos transcontinental...I read blogs...I can go to Wikipedia anytime...or find a close restaurant with reviews....freelance writing jobs....<br /><br />I am not sure what this means, as I agree with MM on targeting NGDP growth...but the numbers may be funny..actually suggest we target something else, like employment,,,<br /><br /><br /><br />I don't see any of this huge increase in the quality of life being captured by traditional GDP measures....<br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-35155939460710189832013-03-13T04:30:13.092-04:002013-03-13T04:30:13.092-04:00Great post as always!
Thank you!Great post as always!<br />Thank you!Anonymoushttps://www.blogger.com/profile/02665089266421768740noreply@blogger.com