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Bitcoin => Press => Topic started by: nevafuse on May 09, 2013, 12:11:01 PM



Title: 2013-05-08 Engadget Primed: The rise (and rise?) of Bitcoin
Post by: nevafuse on May 09, 2013, 12:11:01 PM
http://www.engadget.com/2013/05/08/engadget-primed-bitcoin/ (http://www.engadget.com/2013/05/08/engadget-primed-bitcoin/)


Title: Re: 2013-05-08 Engadget Primed: The rise (and rise?) of Bitcoin
Post by: Zangelbert Bingledack on May 09, 2013, 02:13:02 PM
Quote
Bitcoin uses a historically discredited economic principle [deflation]

Oh yawn. Keynesianism never dies.


Title: Re: 2013-05-08 Engadget Primed: The rise (and rise?) of Bitcoin
Post by: 2_Thumbs_Up on May 09, 2013, 03:39:49 PM
Whenever someon mentions the deal with deflation, people should just start linking this study from the Minneapolis Fed:

http://www.minneapolisfed.org/research/sr/sr331.pdf
Quote
Here we examine the empirical relationship between deflation and depression in a broad
historical context, including but not limited to the Great Depression. We use a panel data set on
inflation and real output growth for 17 countries and more than 100 years. To focus on mediumterm
fluctuations, we break the time series on inflation and real output growth for each country
into five-year episodes, and for each episode, we compute the average annual inflation rate and the
average annual real output growth rate. For any episode, we define a deflation as a negative average
inflation rate and a depression as a negative average real output growth rate. Throughout, we
restrict attention to moderate inflations, those with average annual inflation below 20 percent.

Our main finding is that the only episode in which we find evidence of a link between de-
flation and depression is the Great Depression (192934). We find virtually no evidence of such
a link in any other period.

The inflation argument is dead, both logically and empirically.


Title: Re: 2013-05-08 Engadget Primed: The rise (and rise?) of Bitcoin
Post by: Gabi on May 09, 2013, 04:24:39 PM
"historically discredited economic principle"  ::)

Yeah well gold is deflationary. Is gold an "historically discredited economic principle"? NO.


Title: Re: 2013-05-08 Engadget Primed: The rise (and rise?) of Bitcoin
Post by: nevafuse on May 12, 2013, 12:36:38 PM
Krugman's babysitting analogy is a joke.  If those babysitting bills were more divisible & their value was able to fluctuate...there wouldn't have been an issue.  The proof that deflation is bad is ridiculous.


Title: Re: 2013-05-08 Engadget Primed: The rise (and rise?) of Bitcoin
Post by: davidgdg on May 12, 2013, 04:56:15 PM
Whenever someon mentions the deal with deflation, people should just start linking this study from the Minneapolis Fed:

http://www.minneapolisfed.org/research/sr/sr331.pdf
Quote
Here we examine the empirical relationship between deflation and depression in a broad
historical context, including but not limited to the Great Depression. We use a panel data set on
inflation and real output growth for 17 countries and more than 100 years. To focus on mediumterm
fluctuations, we break the time series on inflation and real output growth for each country
into five-year episodes, and for each episode, we compute the average annual inflation rate and the
average annual real output growth rate. For any episode, we define a deflation as a negative average
inflation rate and a depression as a negative average real output growth rate. Throughout, we
restrict attention to moderate inflations, those with average annual inflation below 20 percent.

Our main finding is that the only episode in which we find evidence of a link between de-
flation and depression is the Great Depression (192934). We find virtually no evidence of such
a link in any other period.

The inflation argument is dead, both logically and empirically.

Thanks. Interesting piece. No surprises there of course.


Title: Re: 2013-05-08 Engadget Primed: The rise (and rise?) of Bitcoin
Post by: kiba on May 12, 2013, 04:58:41 PM
Whenever someon mentions the deal with deflation, people should just start linking this study from the Minneapolis Fed:
/me puts on his devil's advocate hat.

Confirmation bias?


Title: Re: 2013-05-08 Engadget Primed: The rise (and rise?) of Bitcoin
Post by: BitshireHashaway on May 13, 2013, 05:25:26 AM
Not a very factual article. I quite angered by the large amount of articles about bitcoins which aren't correct or do not contain much factually correct evidence about bitcoins, in fact I find it quite annoying.