tag:blogger.com,1999:blog-5713178645208582139.post9145019937438243029..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Case Closed: Milton Friedman Would Have Supported QE2David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-78479811147719437512010-12-09T08:11:57.808-06:002010-12-09T08:11:57.808-06:00Agree with last Anon, "case closed" is a...Agree with last Anon, "case closed" is a bit strong word.<br /><br />Situation in US is really a bit different than it was in Japan back then.Heatherhttp://ilovetoronto.org/noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-90855877133701109472010-12-02T10:25:41.653-06:002010-12-02T10:25:41.653-06:00Wouldn't it depend on whether Friedman agreed ...Wouldn't it depend on whether Friedman agreed that we were currently in deflation? From December 1999 to December 2000 the Japanese CPI fell from 102.5 to 102 (http://www.rateinflation.com/consumer-price-index/japan-historical-cpi.php?form=jpncpi). From October 2009 to October 2010 the US CPI rose from 216.177 to 218.711 (http://www.inflationdata.com/inflation/Consumer_Price_Index/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-62738341051709516442010-11-30T10:34:31.283-06:002010-11-30T10:34:31.283-06:00Stagflation, Charles? Good grief. Can't you h...Stagflation, Charles? Good grief. Can't you have the decency to wait until NGDP growth hits 6% (at the very least) before talking about stagflation?<br /><br />Stagflation is so.... 70's. You know, 8,9,10,14% NGDP and not so much RGDP.<br /><br />Last I checked, NGDP wasn't even up to 5% yet. Whatever that sucker is, it ain't stagflation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-64451535568257244222010-11-29T18:26:39.377-06:002010-11-29T18:26:39.377-06:00Well, we do not have deflation. We are nowhere nea...Well, we do not have deflation. We are nowhere near deflation. Unlike the situation in Japan, real interest rates are significantly negative.<br /><br />We are in a stagflation situation with a modest rate of inflation. There is no reason to think QE2 will increase real output if it succeeds in accelerating inflation.<br /><br />Now Friedman indeed made the case in 2000 that the fed can stimulateCharleshttps://www.blogger.com/profile/00607057013050715435noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-67950831797767860402010-11-29T12:58:29.775-06:002010-11-29T12:58:29.775-06:00"Swapping perfect substitutes does not change..."Swapping perfect substitutes does not change anything in one's portfolio of assets and therefore has no effect on spending."<br /><br />Do you have a source that spells this issue out in detail?<br /><br />Great blog by the way.Tom Doughertynoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-36108311413420292612010-11-29T12:55:11.730-06:002010-11-29T12:55:11.730-06:00Lee,
I am not trying to annoy them, but I am dyi...Lee, <br /><br />I am not trying to annoy them, but I am dying to see how they handle this gem. Of course, if they couldn't accept the evidence we previously showed them I am not sure anything will change their minds.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-20057363666115222602010-11-29T12:47:49.676-06:002010-11-29T12:47:49.676-06:00That "Case Closed" is going to annoy som...That "Case Closed" is going to annoy some people, but I suppose you know that already.Lee Kellynoreply@blogger.com