tag:blogger.com,1999:blog-3758330678390419129.post1577886046292180652..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: The Business Cycle and the Current State of the EconomyRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-3758330678390419129.post-56057260473848000352015-10-08T20:22:55.198-04:002015-10-08T20:22:55.198-04:00Ad Lib...this is precisely the schooling I was hop...Ad Lib...this is precisely the schooling I was hoping for. Very clear and enlightening explanation. Thanks very much for being so generous with your knowledge and time.Anonymoushttps://www.blogger.com/profile/05638992391465831066noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-87350278784115778832015-10-08T11:36:11.295-04:002015-10-08T11:36:11.295-04:00Landru, you are confusing ABCT with Austrian Econo...Landru, you are confusing ABCT with Austrian Economics. While Austrian Economics covers the entire economic spectrum, ABCT is simply the application of Austrian Economics to explain the boom-bust cycle.<br />The ABCT is exactly as RW has described it. He has previously recommended Rothbard’s “the Great Depression” as the best explanation of this theory. However, if you are constrained for timeAd Libertatihttps://www.blogger.com/profile/13565375241577900448noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-24025597723620856632015-10-07T18:44:09.134-04:002015-10-07T18:44:09.134-04:00I'm confused. I confess I haven't hit the...I'm confused. I confess I haven't hit the primary sources on this subject; I've only listened to as much material on Mises.org that I've had time for, like the Mises boot camps for instance. What I've heard the Mises.org type Austrians emphasize about ABCT doesn't jive exactly with what EPJ-ABCT seems to emphasize. I'm writing this comment with the hopeful intentionAnonymoushttps://www.blogger.com/profile/05638992391465831066noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-9310866151542982662015-10-07T14:52:27.709-04:002015-10-07T14:52:27.709-04:00AL,
I’m not arguing any of your points, they are a...AL,<br />I’m not arguing any of your points, they are all true. However, we may have strayed a bit from Robert’s assessment of the economy and what he thinks the FED will do or was supposed to do according to his prognostications back in September. Pardon me for paraphrasing, but I believe Robert’s view has been that the economy is overheating and the FED was going to raise interest rates back RatFinkhttps://www.blogger.com/profile/05676035670344046939noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-1979270184991557022015-10-07T13:09:37.004-04:002015-10-07T13:09:37.004-04:00RF, I believe there are a few clarifications that ...RF, I believe there are a few clarifications that need to be made (or perhaps I'm being a bit too pedantic with the terminology). <br /><br />1) Monetary inflation does cause price inflation every time. In a progressing economy, if the money stock was kept constant, prices have a tendency to decrease. This is due to the fact that as more goods are produced, the same amount of money is Ad Libertatihttps://www.blogger.com/profile/13565375241577900448noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-34275549112328532602015-10-07T01:57:49.441-04:002015-10-07T01:57:49.441-04:00Ad Libertati,
I think the FED has several tools a...Ad Libertati,<br /><br />I think the FED has several tools at their disposal to decrease the money supply, IF THEY WANT TO. I think my point as well as Peter's point is that that FED although has increased the amount of money in reserves just sitting with them from the banks. Has produced almost hardly any noticeable consumer inflation. The money/fiat money has not trickled into the economyRatFinkhttps://www.blogger.com/profile/05676035670344046939noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-6300823536674718642015-10-06T21:13:33.342-04:002015-10-06T21:13:33.342-04:00@Donxon
Exactly. Agglomerations of transactions ...@Donxon<br /><br />Exactly. Agglomerations of transactions bludgeoned in various directions with compensations, escape valves, or competitors all systematically prohibited by law are not markets and don't behave like markets. With enough force backed by enough resources applied for long enough, distortions may never clear, just progressively grow worse until such time as participants give Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-55088960735802193012015-10-06T20:56:55.723-04:002015-10-06T20:56:55.723-04:00"First it is not 'low interest rates.'..."First it is not 'low interest rates.'...It doesn't matter what the level of interest rates are on an absolute level...It's about the interest rate level relative to where rates would be without Fed intervention."<br /><br />Totally agreed. I used the term "low interest rates" sloppily. I should have said, artificially lowered interest rates.<br /><br />"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-55794013209187976372015-10-06T19:11:53.415-04:002015-10-06T19:11:53.415-04:00Thanks for the thorough response. Appreciate your ...Thanks for the thorough response. Appreciate your teaching.Economic Ramblingshttps://www.blogger.com/profile/11436512689083816474noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-5733018236289646342015-10-06T19:07:43.002-04:002015-10-06T19:07:43.002-04:00Hampered markets are still markets. They're j...Hampered markets are still markets. They're just ... hampered.Ad Libertatihttps://www.blogger.com/profile/13565375241577900448noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-39326273318610291312015-10-06T19:05:30.349-04:002015-10-06T19:05:30.349-04:00RF, if the Fed increased the target range of the f...RF, if the Fed increased the target range of the federal funds rate, it doesn't necessarily "take the punch bowl away". This rate is simply the rate at which banks loan reserves to each other overnight. If the banks decided they simply wouldn't loan to other banks at this rate, the Fed would have no choice but to raise the target range. <br /><br />The focus, as RW points outAd Libertatihttps://www.blogger.com/profile/13565375241577900448noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-78374568989045965392015-10-06T18:47:00.264-04:002015-10-06T18:47:00.264-04:00" if Dr. Paul is stating that the current dro..." if Dr. Paul is stating that the current drop off in the participation rate is a signal we are in a new recession, I do not believe he is accurately applying Austrian Theory."<br /><br />This is a brave statement and I applaud you for it. No one can know the truth 100% of the time, and on those occasions when wise men are wrong(and in this case it could be you or Ron Paul) it's Nick Badalamentihttps://www.blogger.com/profile/14015961786370759940noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-46461143675849340272015-10-06T17:05:48.751-04:002015-10-06T17:05:48.751-04:00Perry Mason: I am reasonably sure that quote come...Perry Mason: I am reasonably sure that quote comes from Rothbard himself, without attribution to Keynes: <br /><br />The Russians, after trying an approach to the communist moneyless economy in their "War Communism" shortly after the Bolshevik Revolution, reacted in horror as they saw the Russian economy heading to disaster. Even Stalin never tried to revive it, and since World War IIJule Herberthttps://www.blogger.com/profile/04010275785788333723noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-14213416818386821562015-10-06T14:48:27.842-04:002015-10-06T14:48:27.842-04:00Market clear, but are we really dealing with marke...Market clear, but are we really dealing with markets?Donxonhttps://www.blogger.com/profile/16480364222848672992noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-64395797984937978162015-10-06T14:39:46.594-04:002015-10-06T14:39:46.594-04:00The late Gordon Tullock was the typecast (from sev...The late Gordon Tullock was the typecast (from several angles) critic of the ABCT from a free market perspective. A sample of his views are here: https://mises.org/library/why-austrians-are-wrong-about-depressions . This analysis led to an excellent rejoinder by Garrison: http://www.auburn.edu/~garriro/c3modmac.htm. It seems to me clear that Tullock was wrong about how if ABCT is true, Jule Herberthttps://www.blogger.com/profile/04010275785788333723noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-42028710551490774682015-10-06T12:45:59.886-04:002015-10-06T12:45:59.886-04:00Hi Robert,
I do get what you are saying about the ...Hi Robert,<br />I do get what you are saying about the U.S. being in a boom phase per ABCT. However, your faith that the FED will raise interest rates may be unwarranted. The CPI is going nowhere, in fact the last couple of months there has been a decline. Though the total unemployment figures are down, Peter is correct that they are definitely not on par with the rate of growth the market RatFinkhttps://www.blogger.com/profile/05676035670344046939noreply@blogger.com