I don’t even. From Principles of Economics by Mankiw: Thoughts? Comments?

He’s talking about the long-run, not the short run. Even in the long run, Austrians point out that there are losers depending on where the money is injected and when it’s spent. However, I think it’s unfair to not concede that wages will increase to compensate for increases in inflation. They will …

If we assume a single ‘wave’ of inflation. Try having inflation set as a perpetual policy. Plus wage rates aren’t really effectively bargained over without a clever union and a lot of people aren’t unionized.

wage rates aren’t really effectively bargained over without a clever union Really?

Has anyone’s boss ever said to them “Hey QE3 just came out and prices are going to rise a little bit, so here’s a $1.50/hr raise!”

Oh I get it. So kind of like a “[no one really gets hurt because] in the long run we’re all dead.” Nice. Keynes’ statement has to be one of the dumbest of all time. If there was a list of the most useless, moronic things ever said, that would definitely be on it. Anytime someone uses that I’ll ju…

Mankiw goes into methodological holism on the first page of the book:

Tax brackets are indexed to (price) inflation, according to Mankiw. Oh I get it. So kind of like a “[no one really gets hurt because] in the long run we’re all dead.” Nice. No, as in “the quantity theory of money works in the long term.” I think we can agree that while employers might not want …

Alternatively, take the equation of the quantity theory of money: MV=PQ M is the money supply V is velocity P is price level Q is quantity produced PQ may be simplified as Y, GDP. so MV=Y (easier to look at) This is an identity, because the velocity of money is defined as the average number …

If I could counterfeit $1Trillion a day for a year, and used them to bid for goods and services against you, then your income’s purchasing power would diminish than slowly stabilize over the next ten years, depending on how far your labor/service is removed from the goods/services I’m buying with th…

A Fall in Purchasing Power? The Inflation Fallacy

Economics Economics Questions

MMMark December 17, 2012, 9:22pm 11

Mon. 12/12/17 22:22 EST
.post #240

Then of course, there’s bracket creep:

Help! People on other forums raging everywhere!

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A Fall in Purchasing Power? The Inflation Fallacy

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