tag:blogger.com,1999:blog-8702840202604739302.post8381991813618824110..comments2024-03-12T22:00:25.991-07:00Comments on MacroMania: Lowflation: Then and NowDavid Andolfattohttp://www.blogger.com/profile/12138572028306561024noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8702840202604739302.post-230741934243893452018-01-13T20:38:15.735-08:002018-01-13T20:38:15.735-08:00money is not what puts pressure on prices, demand ...money is not what puts pressure on prices, demand is<br /><br />demand is income not money<br /><br />income is money times the velocity of money, <br /><br /><br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-37962862887288653232018-01-12T03:28:59.350-08:002018-01-12T03:28:59.350-08:00Fair enough. But what is the magnitude of that eff...Fair enough. But what is the magnitude of that effect in the case of the US? Inflation never reached the levels that severely disrupted economic activity (aside from the painful disinflation that ended it). Iskandernoreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-37326013589123533282018-01-11T22:02:37.949-08:002018-01-11T22:02:37.949-08:00That lowflation is largely caused by positive supp...That lowflation is largely caused by positive supply shocks? And that it fortunately hasn't yet caused a de-anchoring of long-run inflation expectations from the target (which probably would be a problem)?Mikenoreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-83334320483764407342018-01-11T05:32:50.377-08:002018-01-11T05:32:50.377-08:00Not necessarily. Inflation can still (in theory, a...Not necessarily. Inflation can still (in theory, at least) affect the *level* of RGDP without affecting its long-run growth rate. (In this case we would say that money is not superneutral.) David Andolfattohttps://www.blogger.com/profile/12138572028306561024noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-54646043342095443332018-01-10T10:08:32.522-08:002018-01-10T10:08:32.522-08:00That money is neutral in the long run?
That money is neutral in the long run?<br />Iskandernoreply@blogger.com