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from the should-not-embrace-deflation-either dept.
Currently we can observe a general slowdown in the annual growth rate in price inflation across major countries around the world. [...] Most commentators are of the view that deflation generates expectations for a decline in prices. As a result, it is held, consumers are likely to postpone their buying of goods at present since they expect to buy these goods at lower prices in the future. This weakens the overall flow of spending and in turn weakens the economy. Hence, such commentators believe that policies that counter deflation will also counter the economic slump.
Inflation is not about general increases in prices as such, but about the increase in the money supply. [...] For instance, if the money supply increases by 5% and the quantity of goods increases by 10%, prices will fall by 5%. A fall in prices however, cannot conceal the fact that we have inflation of 5% here because of the increase in money supply. The reason why inflation is bad news is not of increases in prices as such, but because of the damage inflation inflicts to the wealth-formation process.
The economic effect of money that was created out of thin air is the same as that of counterfeit money — it impoverishes wealth generators. The money created out of thin air diverts real wealth towards the holders of new money. [...] So, countering a falling growth momentum of the CPI by means of loose monetary policy (i.e., by creating inflation) is bad news for the process of wealth generation and hence for the economy. [...] Furthermore, if a fall in the growth momentum of prices emerges on the back of the collapse of bubble activities in response to a softer monetary growth, then this should be seen as good news. The less non-productive bubble activities the better it is for the wealth generators and hence for the overall pool of real wealth.
https://mises.org/wire/central-banks-shouldnt-fight-deflation
(Score: 2) by AthanasiusKircher on Friday March 29 2019, @12:19AM (2 children)
Mr. Troll, please do not bother me. I have no time for you. And what was "ad hominem"? I simply suggested that anti-science websites should not be sources of news for this site, which seems to claim a respect for science and tech and such. Apparently you disagree?
It's only "ad hominem" if you use a personal attack against a source to argue against that source's claims. The very quotation you pulled out of my post says that I do not intend to debate the actual arguments of TFA, so I am in no way making an attack to argue in my favor. I'm simply saying this is not a trustworthy source for a pro-science news forum. (Note that I did actually post on the concept of deflation below in some depth, but I didn't engage with TFA at all... I didn't read it, nor do I care to, anymore than I care to read the ramblings of some Creationist forum.)
Mr. Mises was an interesting rationalist. I've read far more of his material than you claim in your own ad hominem, assuming my lack of knowledge on the basis of nothing. But his ideas belong several centuries ago, before the Scientific Revolution, let alone modern economics.
(Score: 2) by jmorris on Friday March 29 2019, @01:20AM (1 child)
You just defined Ad Hominem in your defense against debating anything from a source you are trying to paint as "unworthy" of consideration in both your attack against the Mises institute and me. I'm falling over laughing right now.
And you have read so much of their stuff you can't even place Ludwig von Mises, their namesake, in the right century. The guy, along with Hayek, who put finished to economic Marxism with their proof of the Impossibility of Socialist Calculation, which of course only caused your kind to change tactics, not abandon your sad anti-human religion and switch to Cultural Marxism instead. Try 1949 for Human Action, which was most certainly after the Scientific Revolution and before the modern anti-reason age.
(Score: 2) by FatPhil on Friday March 29 2019, @09:02AM
Now revisit what he said, and this time attempt to turn on the "reading comprehension" lobe of your brain, assuming it hasn't rusted up.
Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves