tag:blogger.com,1999:blog-8897997766931633186.post5566010002222828258..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Inflation Expectations: A Two Edged SwordBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8897997766931633186.post-41086018201069679352016-11-14T09:39:53.456-05:002016-11-14T09:39:53.456-05:00We really got to be good at covering up with the i...We really got to be good at covering up with the inflation because only then we will be able to work it out nicely and that’s only way we will be able to perform. I keep it all very simple and I don’t have to do too much at all with OctaFX broker with their mighty features especially daily market updates and all that, so that’s how I am able to trade nicely and that boost me big time in every way.Kiratnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-35231281698370465992011-11-11T11:47:43.141-05:002011-11-11T11:47:43.141-05:00Very interesting article and I have some questions...Very interesting article and I have some questions.<br /><br />1. If inflation-targeting prevents prices from adjusting downwards wouldn't this argument apply equally to NGDP-targeting which has an implicit inflation-target and only leads to different policies in dealing with supply shocks? <br /><br />2. I thought he whole point of MM theory is that in a world where the CB has control over the money supply it can always adjust it to stabilize AD (including an expansion factor for expected inflation). Are you saying that in some circumstances (perhaps at the zero-bound where it is no longer possible to reduce interest rates to increase investment) that this does not apply and the best monetary policy may in fact be to allow prices to fall to adjust to the reduced AD ?robhttps://www.blogger.com/profile/04682517711551179057noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-30172896487441120022011-11-11T10:30:28.658-05:002011-11-11T10:30:28.658-05:00Bill, the argument for inflation expectations is t...Bill, the argument for inflation expectations is that it would shift the demand curve to the right. But, technically speaking, wouldn't inflation expectations also shift the supply curve to the left, thereby doing nothing but changing prices and not output? Why would changing expectations only shift one curve?JoeMachttps://www.blogger.com/profile/12650518988624821388noreply@blogger.com