If you are in the Deflation camp, dont bash Keynes

Discussion in 'Economics' started by Daal, Jun 24, 2009.

  1. Daal


    M1 and M2 are up 16% and 9% y-y, the monetary base is soaring. The reason inflation is coming down is because of the phillips curve(in a cyclical basis, through output gap/unemployment) which is a keynesian concept, . I'm amused to see lots of mises minions on ET bashing keynes then boldly stating how deflation is coming no matter what the fed does
  2. pismo10


    Keynes was an academic fool consumed by the religion of liberalism, govt, govt, govt, the ultimate enitity. The Philips curve went out with the dinosaurs..The dollar has big problems.
  3. Daal


    Yet a large amount of people on ET accept that idea that deflation and disinflation is coming for a while, even with the money supply is up sharply. I'm talking about a cyclical Philips curve, lots of ET adopted a keynesian concept yet they are not even aware of it or a too afraid too admit it, it would make them uncool in their rothbard whorshipping circles
  4. How did the Phillips curve account for the 1970s stagflation?
  5. Also, a higher supply of labour resulting in lower than normal wages is standard classic economics, simple supply and demand.
  6. fhl


    If bonds pop, money has to go somewhere, and that somewhere is spelled inflation. And maybe wages won't have to go up to pop the bubble. Maybe just too damn many bonds and nobody wanting to be the patsy, and when the tide turns, it could be an avalanche. And with Obama's plans for spending multi trillions, and the fed's QE, this scenario isn't fare fetched, it's a significant possibility.