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re: Fed hides weekly M1 supply, says "money doesn't matter"

Posted on 4/8/21 at 10:01 am to
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
423792 posts
Posted on 4/8/21 at 10:01 am to
quote:

And asset price inflation is not “inflation,” which should be obvious to anyone who knows anything about inflation

i think the big argument is that how we view inflation needs to change

it wouldn't be shocking to me to find out that people who are pushing this monetary policy know exactly what they're doing in creating neo-inflation but not traditional inflation, so that they can say "see? no inflation!"
Posted by rocket31
Member since Jan 2008
41819 posts
Posted on 4/8/21 at 10:07 am to
quote:

this monetary policy know exactly what they're doing in creating neo-inflation but not traditional inflation, so that they can say "see? no inflation!"


you see this all the time in academia. obfuscation of the truth with language, it's very effective
Posted by buckeye_vol
Member since Jul 2014
35242 posts
Posted on 4/8/21 at 10:44 am to
quote:

i think the big argument is that how we view inflation needs to change
I mean there are a lot of reasonable arguments for changes or improvements in the measurement and estimation of inflation as it is a latent construct, often with multiple orders of latent constructs with many manifest variables measured with error and measured and estimates in such fundamentally different ways (e.g., some account for quality). And on top of that there are variances in the variables “inflationary impact” across time, regions, socio-economics levels, and other demographics.

Given all of those complexities, uncertainties, and disagreements, the idea that “how we view inflation needs to change” is reasonable if it relates to those factors (measurement, estimation, etc). But it’s unreasonable to change it on a conceptual and definitional level as the concept and definition itself is simple, logical, and pretty universally understood.
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