tag:blogger.com,1999:blog-5713178645208582139.post1709251406613418334..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Tyler Cowen on DeflationDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5713178645208582139.post-85045873602013100002008-04-25T08:55:00.000-05:002008-04-25T08:55:00.000-05:00Excellent points G.Selgin. I should have been more...Excellent points G.Selgin. I should have been more careful in the original post. I made an update to the post that reflects these points.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-57268897727036008042008-04-25T08:13:00.000-05:002008-04-25T08:13:00.000-05:00David neglects to observe that under a productivit...David neglects to observe that under a productivity norm there's no need for general downward adjustments in nominal wage rates; and in doing so he seems to confuse the argument for such a norm with an argument for more rapid deflation. Tyler, on the other hand, may be wrong in supposing that a frozen base regime would result in deflation exceeding the rate of productivity growth. Whether it Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-7294674190946795522008-03-20T13:00:00.000-05:002008-03-20T13:00:00.000-05:00But we should be careful about dismissing money il...But we should be careful about dismissing money illusion. I seem to remember a paper on the stock market and inflation by Campbell and Vuolteenen concluded that the stock market underperformed during inflationary times because people extrapolated cash flows from low inflation times and discounted them using the (then) current high nominal interest ratesAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-25011210871255985962008-03-20T07:13:00.000-05:002008-03-20T07:13:00.000-05:00Even if Cowen were right, and wages were resistent...Even if Cowen were right, and wages were resistent to downward nominal adjustments, would it be so awful if workers experienced an increase in real wages as a result? One of the stories of the past three decades has been the flatlining or loss in real wages, which I would argue has contributed to the consumer debt binge. Let workers share in the productivity gains of the past decades!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-25498738317270307052008-03-19T11:35:00.000-05:002008-03-19T11:35:00.000-05:00Gabriel,I realy do enjoy teaching and most of my s...Gabriel,<BR/><BR/>I realy do enjoy teaching and most of my students. However, grading non-multiple choice tests--as I was doing while listening to EconTalk--can be a mind-numbing task.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-4361828326007578862008-03-19T10:53:00.000-05:002008-03-19T10:53:00.000-05:00I'm sure that the first sentence of your post will...I'm sure that the first sentence of your post will not freak out your students (too much). :-)Gabriel Mhttps://www.blogger.com/profile/18020403326536585795noreply@blogger.com