tag:blogger.com,1999:blog-6926413038778731189.post541520305186583659..comments2023-10-16T07:13:12.123-05:00Comments on A plain blog about politics: Catch of the DayJonathan Bernsteinhttp://www.blogger.com/profile/15931039630306253241noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6926413038778731189.post-23395998917190142442011-09-19T17:16:18.466-05:002011-09-19T17:16:18.466-05:00What was the cost of actually fighting inflation i...What was the cost of actually fighting inflation in the 80's? About 11% unemployment for a few months? So basically, if worse comes to worse and we get some hyperinflation, we'd be right about where we are now, but with some room for monetary policy to maneuver?<br /><br />That sounds naive, but I don't see how we could get inflation without some wage growth and decrease in unemployment first. I suppose a supply shock or maybe foreign demand for raw materials could do it. But a supply shock's going to screw us no matter what. And I don't see foreign demand pushing inflation that high.Some Guynoreply@blogger.comtag:blogger.com,1999:blog-6926413038778731189.post-6734733086899391602011-09-19T15:18:29.709-05:002011-09-19T15:18:29.709-05:00Don,
Thanks, and link fixed (and repositioned to...Don, <br /><br />Thanks, and link fixed (and repositioned to where it makes more sense).<br /><br />Sorry everyone -- that's two of those today (already). Must be some sort of Monday thing. Thanks to all for the corrections.Jonathan Bernsteinhttps://www.blogger.com/profile/15931039630306253241noreply@blogger.comtag:blogger.com,1999:blog-6926413038778731189.post-44930257716189939142011-09-19T15:16:34.754-05:002011-09-19T15:16:34.754-05:00Well, it's probably the largest monetary expan...Well, it's probably the largest monetary expansion in Fed history. While that expansion isn’t nearly enough in some people’s eyes, it’s worth mentioning that a lot of economists are really worried by what we’ve already done. <br /><br />As to the Fed critics -- they tend to carelessly equate monetary expansion with inflation. But in their defense, the definition of inflation is essentially arbitrary -- in the 70’s, it was decided that we would stop counting real estate towards inflation. So Greenspan technically presided over relatively low inflation even while the housing bubble had reached catastrophic proportions.Couveshttps://www.blogger.com/profile/00926561539205771774noreply@blogger.comtag:blogger.com,1999:blog-6926413038778731189.post-43521551754873430352011-09-19T15:09:56.697-05:002011-09-19T15:09:56.697-05:00I think you have a mistake in your link. Is the L...I think you have a mistake in your link. Is the Leonhardt "catch" you are applauding the editorial graphic at http://www.nytimes.com/2011/09/18/sunday-review/the-facts-on-the-fed.html ? I think that fits better then the existing link, which just points to a calendar of debates for the Republican Presidential nomination.Don Dressernoreply@blogger.com