Comments on: The Irrepressible Gold Standard; or: Inflation, Inflation Everywhere, and Only Rate-cuts to Drink http://caveatarchos.com/2008/01/28/the-irrepressible-gold-standard-or-inflation-inflation-everywhere-and-only-rate-cuts-to-drink/ AIER Fellows Guide to Graduate School, the Economy and Good Places to Eat Fri, 21 Nov 2008 18:35:27 +0000 http://wordpress.org/?v=2.3.3 By: wintercow20 http://caveatarchos.com/2008/01/28/the-irrepressible-gold-standard-or-inflation-inflation-everywhere-and-only-rate-cuts-to-drink/#comment-53 wintercow20 Thu, 07 Feb 2008 15:21:43 +0000 http://caveatarchos.com/2008/01/28/the-irrepressible-gold-standard-or-inflation-inflation-everywhere-and-only-rate-cuts-to-drink/#comment-53 Tyler Cowen sums up the inflation problem when talking about something else ... "We pass too many policies just to show politicians are "doing something," just because it is an election year, just because voters think government should solve every problem, and just because politicians know that voters don't understand any real economics." Is it any wonder I am on the verge of depression? Tyler Cowen sums up the inflation problem when talking about something else …

“We pass too many policies just to show politicians are “doing something,” just because it is an election year, just because voters think government should solve every problem, and just because politicians know that voters don’t understand any real economics.”

Is it any wonder I am on the verge of depression?

]]> By: Michael http://caveatarchos.com/2008/01/28/the-irrepressible-gold-standard-or-inflation-inflation-everywhere-and-only-rate-cuts-to-drink/#comment-52 Michael Wed, 06 Feb 2008 21:43:08 +0000 http://caveatarchos.com/2008/01/28/the-irrepressible-gold-standard-or-inflation-inflation-everywhere-and-only-rate-cuts-to-drink/#comment-52 I'm with you on the majority of the post, but not to the point of hyperinflation. Although I can see inflation rising, I don't see it getting to hyperinflation unless I've seriously underestimated the inteligence of Ben. You've really hit the nail on the head with regrds to commodity driven prices, but if there is a sudden increase of demand for a product, it can raise prices and might be better off not being used in an inflation calculation. This is why the FED went with core inflation; because the increase in oil demand from other countries could distort the actual inflation. However, that, among other reasons, is why the FED shouldn't be determining money supply from inflation calculations. The increase of gold quantity happens to correspond with growth historically, but there are times that it fails. I still need to learn more about the free banking system, but I tend to favor it. I’m with you on the majority of the post, but not to the point of hyperinflation. Although I can see inflation rising, I don’t see it getting to hyperinflation unless I’ve seriously underestimated the inteligence of Ben. You’ve really hit the nail on the head with regrds to commodity driven prices, but if there is a sudden increase of demand for a product, it can raise prices and might be better off not being used in an inflation calculation. This is why the FED went with core inflation; because the increase in oil demand from other countries could distort the actual inflation. However, that, among other reasons, is why the FED shouldn’t be determining money supply from inflation calculations.
The increase of gold quantity happens to correspond with growth historically, but there are times that it fails. I still need to learn more about the free banking system, but I tend to favor it.

]]>