Everyone is talking about nominal prices, money supply, blah blah blah. Everyone says all we need is more money, just hoping we can take our economy somewhat back to where it was.
What I like about the Austrian folks is that they tend to talk more about the real economy. They talk about real prices, not just nominal prices. They note that the economy is trying to get to a new equilibrium, and that causes some pain. We need to save more, and that is what people are doing now. See the graph below. This will hurt. But we are heading in the right direction.
Look again at the graph below. Shouldn't we be punished for a zero savings rate?
Wednesday, December 3, 2008
Blog Archive
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2008
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December
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- I told you the money supply doubled!
- The Money Supply Has Doubled!
- Thoughts on Austrian Economics
- Michael Pollan Stars in Atlas Shrugged
- Unintended Consequences
- Saving for Retirement
- Put your money under the mattress
- Wealth of Nations: Part 1
- Can Obama Create Jobs?
- Understanding Exchange Rates
- Worst Intro Ever
- Best Economic Quote Ever
- I have this friend, who...
- New Era of Ag Econ
- Finance and the Macro
- We are finally saving more money
- The Importance of California for Animal Rights Mov...
- Pilgrim Socialism
- I Hate Aggregate Supply / Demand
- Blog Medley
- What OK College Kids Listen To
- Making Fun of Students
- Smoke'em if you got'em
- Blogs are awesome, and prestigious
- Unemployment During the Great Depression
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December
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