Bitcoin Forum
November 25, 2017, 04:32:50 AM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: « 1 2 3 4 5 6 7 8 [9]  All
  Print  
Author Topic: Krugman makes some good points  (Read 6974 times)
bb113
Hero Member
*****
Offline Offline

Activity: 728


View Profile
March 28, 2013, 07:40:36 AM
 #161

I have seen a lot of behaviour amongst bitcoin users indicating that a deflationary currency incites at least a subset of people to try even harder to get more of it. Other people will become wealthy and then bored and look to invest in projects that they think are for the common good (people are not economic robots). Some will just hoard I suppose. The whole argument for inflation seems very suspect to me, which is what drew me to this project.
1511584370
Hero Member
*
Offline Offline

Posts: 1511584370

View Profile Personal Message (Offline)

Ignore
1511584370
Reply with quote  #2

1511584370
Report to moderator
1511584370
Hero Member
*
Offline Offline

Posts: 1511584370

View Profile Personal Message (Offline)

Ignore
1511584370
Reply with quote  #2

1511584370
Report to moderator
1511584370
Hero Member
*
Offline Offline

Posts: 1511584370

View Profile Personal Message (Offline)

Ignore
1511584370
Reply with quote  #2

1511584370
Report to moderator
Join ICO Now A blockchain platform for effective freelancing
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
benjamindees
Legendary
*
Offline Offline

Activity: 1330


View Profile
March 28, 2013, 08:02:19 AM
 #162

BTW, its perhaps appropriate to remind you all that credit money isnt a government invention. It was created by the free market in response to a demand for credit when gold was our monetary base and there wasnt enough to finance our economic growth.

You're referring to the oil boom.  Some of us tend to think that wasn't such an "economic" thing to do -- consuming the largest energy resource mankind has ever discovered within a few generations, exploding the human population, and ignoring any environmental effects it may have had.  Either way, I have a feeling the question will be answered definitively within most of our lifetimes.

Civil Liberty Through Complex Mathematics
MoonShadow
Legendary
*
Offline Offline

Activity: 1694



View Profile
March 28, 2013, 01:43:04 PM
 #163



It's not better, nor worse, for society at large.  That's actually impossible.  The "market cap" of an economy is simply a reflection of the total wealth of that economy.  It doesn't matter so much who happens to possess that wealth, from an economic perspective.

Distribution of wealth actually matters very, very much.


Politcally and socially, sure.  Economicly or mathmaticly, not so much.

Quote
But thats not the point Im making, as it isnt about wealth; its about availability of credit.  You (usually) dont get significantly more or less wealthy if you invest your credit money for instance in the stock market. But what you do achieve is making credit (ie money) available for businesses and generally thats a good thing for the economy. If everyone would hide their fiat under their pillow you would have a problem. Thats why I say the small disincentive inherent to inflationary  credit money is actually a  good property for the economy at large.


You're missing the point.  Credit availability is a problem for whom?  I'm not trying to be a jerk, I'm trying to be a better economics professor than you apparently have been exposed to thus far.  The classic method involves asking questions of the student, in order to lead them to a deeper understanding of the topic.  Economics is more than mathmatics or statistics, it's people, so both the who and why does matter.

Moon I'm having trouble understanding your two statements in relation to each other.  They seem to be contradictory.  In your eagerness to teach, you may have been a bit unclear.  The way I see it, economics is both social and mathematical science, and from that perspective, the distribution of wealth matters very much.  I agree with you that the who and the why does matter.

.

That quote is taken out of the context of an ongoing conversation.  The basic point is that, while economics can't practically be separated from the social aspect (a core premise of Praxeology, BTW), a great many modern 'economists' (Krugman being one example) will in one article discuss the mathmatics as if the social context of such events doesn't matter while in another article discuss their political ideology as the 'logical' outspring of rational economic thoughts & theories.  It does matter how wealth is distributed across society; to every ideology, but it doesn't matter to most Macroeconomic theories commonly preached by higher academia.  The mathmatics becomes an abstraction, and the social context is lost in the numbers.

"The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations. Each central bank...sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."

- Carroll Quigley, CFR member, mentor to Bill Clinton, from 'Tragedy And Hope'
Pages: « 1 2 3 4 5 6 7 8 [9]  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!