tag:blogger.com,1999:blog-5713178645208582139.post5193848524738756898..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: How Can It Be?David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-5713178645208582139.post-64032418509234384282010-10-04T02:17:21.528-05:002010-10-04T02:17:21.528-05:00If there is an AS shock, should there be price inf...If there is an AS shock, should there be price inflating with currency instead of debt?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-79138940414964568162010-09-15T14:01:47.458-05:002010-09-15T14:01:47.458-05:00The point is not comparing GDP in Japan to other c...The point is not comparing GDP in Japan to other countries, actually. The point is that it is an open question, why deflation occured during periods of growth in Japan. That's the issue.<br /><br />What Posen says, is that in the cyclical expansion from 2002-2008, Japan had the high GDP growth and very high productivity growth during the period. Higher by either measure than the US, UK, Chris of Stumptownnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-19148732391957660272010-09-15T11:42:33.567-05:002010-09-15T11:42:33.567-05:00ECB-Please argue issues on the merits.
Actually, ...ECB-Please argue issues on the merits.<br /><br />Actually, I own industrial that is still well abovewater.<br /><br />That said, any investor of any stripe in this economy needs reflation. There is no sin in property investors smelling profits and getting back to investing. <br /><br />And, it is a reality that banks have lent on property based on nominal dollars. If we can reflate, and Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-80070525442303425682010-09-15T00:02:50.993-05:002010-09-15T00:02:50.993-05:00Think they were more concerned about the unemploym...Think they were more concerned about the unemployment than the disinflation?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-12749147487136920152010-09-14T13:32:18.470-05:002010-09-14T13:32:18.470-05:00Your point about deflation and growth is well made...Your point about deflation and growth is well made. It reminds me of Adam Posen's recent paper on Japan ("Neither Ran nor Rashomon"). Basically he points out that Japan's productivity and GDP growth were pretty good, despite having persistent mild deflation. <br /><br />The dilemma he poses is if the output gap was shallow, then deflation should have not been so persistent.Chris of Stumptownnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-68134065281565571102010-09-14T13:26:48.712-05:002010-09-14T13:26:48.712-05:00Benjamin says: "We need to reflate property v...Benjamin says: "We need to reflate property values". Own a home that's $200K underwater do we ?<br />I think DB had a much better idea when he suggested a debt to equity swap for home mortgages.Ecbnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-65060488049376051032010-09-14T12:19:11.913-05:002010-09-14T12:19:11.913-05:00Benjamin,
I agree it is has no bearing on today&#...Benjamin,<br /><br />I agree it is has no bearing on today's problems, but couldn't resist responding to Leonhardt's apparent puzzlement over this period. Don't worry I am still concerned about the real deflation problem now.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-71050894677683235362010-09-14T11:49:50.158-05:002010-09-14T11:49:50.158-05:00The 1950 episode may be of academic interest, but ...The 1950 episode may be of academic interest, but it was brief, and who knows if measuring inflation is even accurate when gets down to the low zero-onesy-twosy range.<br />I presume there was strong AD in 1950. You also get declining overhead per unit costs when AD is strong and growing. (That's one reason why stimulus is not as inflationary as imagined by the current timid Japan Wing of Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-59884449863078155932010-09-13T17:54:31.119-05:002010-09-13T17:54:31.119-05:00It seems that by the way money enters the economy,...It seems that by the way money enters the economy, i.e. through loans, too much gets funneled into housing right off the top, which also increases the value of housing in relation to other portions of the economy. Now, with the price of housing coming down, other assets appear to be declining in value but that kind of deflation seems to be primarily in secondary markets where production capital Anonymousnoreply@blogger.com