raghu wrote: > It is funny that the intellectual heirs of Ayn Rand - the libertarians > - are today among the harshest critics of Alan Greenspan. He is > usually denounced in libertarian circles as a sellout because of the > way his easy money policies allegedly debased the value of the US > dollar...
money libertarians use language differently. For example, in those circles, it's common to hear about "inflation" during the 1920s in the US. What? the path of the consumer price index was flat and drifting downward. But by "inflation," they mean credit inflation, where the money supplies grow relative to the monetary base. They sometimes like the idea of Henry Simons and the early MF, who wanted to end the ability of banks to "create money." Of course, that would produce deflation or (to avoid that fate) require a regular increase in the monetary base. That's not allowed it gold buggery is imposed, so that the monetary base = the stock of gold and fiat money is abolished. I guess they like deflation, because that always helps creditors. (Directly helps creditors, that is, but as Irving Fisher argued, deflation can cause a depression and the process can feed on itself.) -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
