tag:blogger.com,1999:blog-8897997766931633186.post9124822334036458172..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Great News! Fourth Quarter Money Expenditures Increase Sharply! Inflation Stays Low!Bill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8897997766931633186.post-48392450334078286412016-01-02T14:13:18.958-05:002016-01-02T14:13:18.958-05:00I don’t really like inflation at all, I always try...I don’t really like inflation at all, I always try to plan with keeping things simple, but I do prepare for anything surprising. I am lucky enough to work with OctaFX broker, as they have great 50% bonus on deposit, it helps me big time given I am able to create really solid money management that helps me work smoothly and leads into good profits consistently, so that’s why I don’t take much tension about anything at all in any situation.Kasimnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-61970763883423015472011-02-05T12:29:05.849-05:002011-02-05T12:29:05.849-05:00I don't believe that we can expect that a perm...I don't believe that we can expect that a permanent, planned depreciation of money by some rate can occur without workers expecting an equivalent raise.<br /><br />Sure a noninflationary growth path of money expenditures means that the trend rate of pay increase is only 3%. If a shift in demand for particular type labor requires a more than 3% increase in real wages, simply holding the line of those workers wages for a year will not bring them into to equilibrium. <br /><br />But would 5% or 10% money expenditures growth really help? How much inertia will there be in the implied 5% or 10% growth in money wages? How fast does inflation have to rise, year and year at a constant rate before people expect "cost of living" raises?<br /><br />Further, when people do expect such raises, what happens when there is an adverse shock to aggregate supply? A situation where "cost of living" raises are inappropriate?<br /><br />Still further, how often should people take a sectoral 3% real wage cuts (and someone else is getting increases) and not have career shifts? <br /><br />I don't buy this "inflation lubricates relative real wage adjustments."Mayor Bill Woolseyhttps://www.blogger.com/profile/15439136665155575382noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-89456580657319545122011-01-29T14:30:11.580-05:002011-01-29T14:30:11.580-05:00I don't think a target of 3% is advisable with...I don't think a target of 3% is advisable without pursuing policies that enhance labor market flexibility. I prefer 5%.<br /><br />However, in real terms the increase in FSDP was 7.1%, the most in 26 years. I think this shows a number of things: <br /><br />1) QE2 worked<br />2) Expectations matter (Bernanke’s Jackson Hole speech probably did more than the actual implementation)<br />3) There are no lags to monetary policy.<br /><br />Needless to say an explicit target would help much more than an arbitrary asset purchase figure. But first more people need to be convinced that 1) printing money has real effects in the short run, and that 2) something needs to be done.Mark A. Sadowskinoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-48971972721186357472011-01-29T14:16:45.168-05:002011-01-29T14:16:45.168-05:00SIncerly, I don´t understand why is so important f...SIncerly, I don´t understand why is so important for you NominalFSDP if 2% inflation is too much. <br />I can understand if you think (as I do) that some inflation is important. Would not be more simple to fix Real FSDP?<br />I tend to think some inflation is important because prices and wages adjust very slowly. I suppose that is the reason for Central Banks to pursuit a low but positive inflation rate.www.MiguelNavascues.comhttps://www.blogger.com/profile/00880006105532291958noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-5848623786796548332011-01-29T08:03:16.133-05:002011-01-29T08:03:16.133-05:00Bill
Hi! Remember me? To let you know that I put u...Bill<br />Hi! Remember me? To let you know that I put up an "extended comment" on David´s latest post where you also "come into play".<br />Have a nice week-end.<br />Marcus<br />http://thefaintofheart.wordpress.com/2011/01/29/are-we-there-yet-an-extended-comment-on-david-beckworth/João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.com