tag:blogger.com,1999:blog-2098432983500045934.post4357480937012327515..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: The Cost-Push EconomyThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2098432983500045934.post-37101444994023984342023-02-23T23:20:27.611-05:002023-02-23T23:20:27.611-05:00New link to Mishkin's 1984 paper:
https://www...New link to Mishkin's 1984 paper:<br /><br />https://www.kansascityfed.org/Jackson%20Hole/documents/3892/1984-S84MISHK.pdf<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-3156610342304954162020-12-07T17:40:28.727-05:002020-12-07T17:40:28.727-05:00From my blog above:
Milton Friedman asked a questi...From my blog above:<br /><b>Milton Friedman asked a question: Why the excessive monetary growth?<br />The answer Friedman provides, which I find totally inadequate, includes three points:<br />1. the rapid growth of government spending,<br />2. full-employment policy, and<br />3. mistakes by the Federal Reserve.</b><br /><br />From <a href="https://www.kansascityfed.org/publicat/sympos/1984/S84mishk.pdf" rel="nofollow">The Causes of Inflation</a> by Frederic S. Mishkin. From the first page:<br />"As long as inflation is appropriately defined to be a sustained inflation, macroeconomic analysis, whether of the monetarist or Keynesian persuasion, leads to agreement with Milton Friedman's famous dictum, "Inflation is always and everywhere a monetary phenomenon." However, the conclusion that inflation is a monetary phenomenon does not settle the issue of what causes inflation because we also need to understand why inflationary monetary policy occurs."<br /><br />Mishkin continues his thought on page 7:<br />"To understand the process generating sustained inflation, it is not enough to know that a sustained inflation will not occur without a high rate of money growth. We also must understand why governments pursue inflationary monetary policies. Because politicians and government policymakers never advocate inflation as a desirable outcome, it must be that in trying to achieve other goals, governments end up with a high money growth rate and thus a higher inflation rate. There are two goals that may lead to inflationary monetary policy: high employment, and the desire to have high government spending with low taxes."<br /><br />Yeh. It is pretty easy to see, in what Mishkin says, that he is analyzing psychological motivations rather than economic forces. I HATE IT when people invent motives and assign them to other people. I cannot accept his analysis at all! I'm sure I had the same objection to Friedman's analysis, somewhere, but it is not in the above post.<br /><br />I run across it, I'll make a note.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-11660936609523404382012-05-28T16:18:14.466-04:002012-05-28T16:18:14.466-04:00Reliance of money-like instruments (credit) has dr...Reliance of money-like instruments (credit) has dramatically changed the balance of “What we spend” and thereby altered the source of inflation. This change may also help explain why, since the 1980’s, The Economy Needs a Bubble! Until this distinction is better and more widely understood, monetary and fiscal policy may continue to attack the wrong problem.<br /><br />http://bubblesandbusts.blogspot.com/2012/03/economy-needs-bubble.htmlAnonymoushttps://www.blogger.com/profile/00720722626969395929noreply@blogger.com