Ed Huntress wrote:

On Sun, 18 Mar 2012 11:36:08 -0500, jim
wrote:

Ed Huntress wrote:


?Price inflation was high in the 80's.
?Much higher than most of the 50's and 60's when
?prices increased by about 1% or less per year.

"High," compared to what?

You don't read. I stated compared to what.

But it fell flat. Dr. Paul said all hell would break loose. What
happened is that inflation rates regressed to the mean.

What happened is people got used to much higher inflation.




I stated the facts and then supported them with an Austrian School
prediction that proved to be nuts, as so many of them are.

No you misrepresented the facts by quoting what a
non-economist said 25 years ago, and tried to claim
it is representative of Austrian thinking today.





Money Velocity is the ratio of a measure of quantity of
money to a measure of quantity production. And that is certainly
not something Austrians ignore.

Do you have an example? Their theories about inflation seem always to
be tied to money supply.

How can you think "the ratio of a measure of quantity of money
to a measure of quantity production." is not tied to the
money supply?






Which Austrian economist are you talking about?

I posted a link.

Yeah, a paper by Vijay Boyapati, a Google engineer and self-described
former leftist who never heard of Ron Paul until 2008. Two years
later, he's authoring papers on economics that contain statements like
this:

The article has well documented references to leading Austrian
economists. You asked for references in regard to Austrian views
on inflation and the paper gives them, and of course you ignore
those references and obsess instead about Ron Paul who is never
mentioned.



"Much of the analysis devoted to the inflation-deflation debate in the
economics profession is neoclassical in nature, focusing on economic
aggregates such as employment, GDP, CPI and their ostensible
correlations. This method of economic analysis is fundamentally
flawed."




"The Austrian school of economics provides an alternate means of
understanding economic phenomena based on laws of economic causality
derived from the actions and motivations of individuals."

AHA! An honest Austrian. What Austrian School "economics" amounts to
is social theory about how people behave.

And you think other economic theories are not???

The point of the article is that after many years
of Austrians correctly predicting inflation due to relentless
credit expansion, Austrians are now taking a different view
on inflation due to the sudden end of that credit expansion.





Here is another one.

http://www.creditwritedowns.com/2012...sh-either.html

"I believe this dynamic will induce a Scylla and Charybdis of
inflationary and deflationary forces, forcing central bankers to add
and withdraw liquidity in a manic way."


Hee-haw! Look out for the manics! And stay clear of the depressives.

So far, the Fed has issued $30 trillion in short term loans
to backstop liquidity shortfalls all over the world.
How much more does it have to be before you regard it
as non-trivial?