the_austrian Posted June 6, 2011 Share Posted June 6, 2011 Eminently qualified to sit on the board of the Bank of England. It's not inflation it's economic growth. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 6, 2011 Share Posted June 6, 2011 The mans a genius why wasn't he put in charge of the BoE. And the money comes from where? Quote Link to comment Share on other sites More sharing options...
the_austrian Posted June 6, 2011 Author Share Posted June 6, 2011 No doubt he is an adherent of the velocity theory of inflation which states that spending money makes it less valuable. Like a second hand television set, the more people that have used it the less valuable it gets. Except that the note still says £10 on the front. Quote Link to comment Share on other sites More sharing options...
Game_Over Posted June 6, 2011 Share Posted June 6, 2011 Eminently qualified to sit on the board of the Bank of England. It's not inflation it's economic growth. What a f*kkin Moron. :angry: Quote Link to comment Share on other sites More sharing options...
Goat Posted June 6, 2011 Share Posted June 6, 2011 WTF? Nothing to do with technological advances, improved manufacturing processes, better education of workforce etc? What sort of economist is that man supposed to be? Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted June 6, 2011 Share Posted June 6, 2011 He's refreshingly honest and correct, despite being the one notoriously "dovish" MPC member who helped cause this mess. GDP is a nominal measurement. Without debt creation it will contract. Quote Link to comment Share on other sites More sharing options...
cica Posted June 6, 2011 Share Posted June 6, 2011 Are we sure this ain't a troll twitter account? It's it's not... Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted June 6, 2011 Share Posted June 6, 2011 Are we sure this ain't a troll twitter account? It's it's not... I guess he doesn't teach much about capital formation in his classes. David is a good comic, Blanchflower v. Blanchflower proves that. Quote Link to comment Share on other sites More sharing options...
DebtFree2011 Posted June 6, 2011 Share Posted June 6, 2011 The UK's economy is addicted to debt ... need anymore proof. It cannot grow without endless debt and deficit. And Blanchflower is talking up QE3 in America ..... modern economies are empty shells ......... Quote Link to comment Share on other sites More sharing options...
Game_Over Posted June 6, 2011 Share Posted June 6, 2011 I guess he doesn't teach much about capital formation in his classes. David is a good comic, Blanchflower v. Blanchflower proves that. The man is an absolute sh*tbag If he was allowed to run the economy we would overtake Zimbabewe as the wealth creation capital of the World in about 12 months. Quote Link to comment Share on other sites More sharing options...
KingBingo Posted June 6, 2011 Share Posted June 6, 2011 Keynesian F@ckwit! Quote Link to comment Share on other sites More sharing options...
_w_ Posted June 6, 2011 Share Posted June 6, 2011 (edited) Eminently qualified to sit on the board of the Bank of England. It's not inflation it's economic growth. He's right of course: <Edit to add: I didn't realise it was Blanchflower. There is a fifth dimension, beyond that which is known to man. It is a dimension as vast as space and as timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man's fears and the summit of his knowledge. This is the dimension of imagination. It is an area which we call The Twilight Zone. > Edited June 6, 2011 by _w_ Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted June 6, 2011 Share Posted June 6, 2011 The man is an absolute sh*tbag If he was allowed to run the economy we would overtake Zimbabewe as the wealth creation capital of the World in about 12 months. I've never met the guy personally so wouldn't want to judge, steady on with the name calling. That said, I don't think his students are well served by somebody so blatantly politically partial, they're going to end up with a very black and white view of the world with huge blind spots. All these theories simply reduce people to cogs that simply exist to service a debt obligation, it's like a utilitarian hell where a new microwave will sudden make everyone happy. Unbridled credit expansion = the sum of human happiness, and they have a model to prove it, nice. Quote Link to comment Share on other sites More sharing options...
tinker Posted June 6, 2011 Share Posted June 6, 2011 My goodness. Reminds me of the scene in Planes, Trains and Automobiles just before the crash: "You're going the wrong way!" "How does he know which way we are going." Debt is the answer. More debt, and then some more. What an utter tosspot! How do these people get into powers of such influence? The sad thing is he will never be out of work in some position of fvckwittery. I would rather trust the economy with a cabinet made up of posters on here. I may have to draw the line at... Quote Link to comment Share on other sites More sharing options...
R K Posted June 6, 2011 Share Posted June 6, 2011 He's forgotten net external trade. Actually, he probably hasn't. Quote Link to comment Share on other sites More sharing options...
shipbuilder Posted June 6, 2011 Share Posted June 6, 2011 There's quite a lot of bluster on this thread, but apart from not mentioning exports as a source of growth (which is probably mostly dependant on lending as well), I'm pretty sure he's technically correct. Can anyone explain why he's wrong? Quote Link to comment Share on other sites More sharing options...
Traktion Posted June 6, 2011 Share Posted June 6, 2011 (edited) There's quite a lot of bluster on this thread, but apart from not mentioning exports as a source of growth (which is probably mostly dependant on lending as well), I'm pretty sure he's technically correct. Can anyone explain why he's wrong? Indeed. The question is whether we should be chasing GDP growth at all costs or doing something else. I'd suggest we throw in the moral argument about who will be paying for the government borrowing, along with whether median wealth per capita would be a more appropriate target. Edited June 6, 2011 by Traktion Quote Link to comment Share on other sites More sharing options...
_w_ Posted June 6, 2011 Share Posted June 6, 2011 (edited) There's quite a lot of bluster on this thread, but apart from not mentioning exports as a source of growth (which is probably mostly dependant on lending as well), I'm pretty sure he's technically correct. Can anyone explain why he's wrong? He confuses growth and inflation. Coming from someone of his background and position it's a frightening thought. Edited June 6, 2011 by _w_ Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted June 6, 2011 Share Posted June 6, 2011 He confuses growth and inflation. Coming from someone of his background and position it's a frightening thought. Growth is currently measured in nominal terms. Quote Link to comment Share on other sites More sharing options...
_w_ Posted June 6, 2011 Share Posted June 6, 2011 Growth is currently measured in nominal terms. Growth is not inflation. And in theory, it is meant to be measured in real terms (although we know it is not). Quote Link to comment Share on other sites More sharing options...
LuckyOne Posted June 6, 2011 Share Posted June 6, 2011 He confuses growth and inflation. Coming from someone of his background and position it's a frightening thought. Frightening but entirely predictable. Reading Bernanke and Gertler tells us everything that we need to know about the scale of the uncontrolled experiment underway at the moment : inflation is massively preferable to a reset of asset prices relative to incomes in their view. Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted June 6, 2011 Share Posted June 6, 2011 Growth is not inflation. And in theory, it is meant to be measured in real terms (although we know it is not). He's playing by the rules of "their" game. You're talking about changing the game. Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted June 6, 2011 Share Posted June 6, 2011 There's quite a lot of bluster on this thread, but apart from not mentioning exports as a source of growth (which is probably mostly dependant on lending as well), I'm pretty sure he's technically correct. Can anyone explain why he's wrong? It's not strictly true, private companies can reinvest profits into new capital equipment and hire new staff, that doesn't directly involve the government or banks as such. Twitter is a bit reductive, but he seems to be making a point about demand and implies that debt fueled government and private consumption = growth, and there is no other way. That does work for a bit as we've seen over the past decade or so, but it's not exactly sustainable if consumption always outpaces production. What he advocates has been tried before countless times, it was called The Barber Boom and "dash for growth" etc back in the day, and it worked for a bit but never ended well, but nothing ever does. We're all doomed by natural resource constraints anyway, so even if you did come up with some magical plan it'll just blow up in your face eventually. So all these theories and rants are like bearded Victorians muttering on about hairsplitting theology back in the day. The real world doesn't care. http://www.youtube.com/watch?v=IvvwNR3vF44 Quote Link to comment Share on other sites More sharing options...
_w_ Posted June 6, 2011 Share Posted June 6, 2011 He's playing by the rules of "their" game. You're talking about changing the game. Ah, I see what you are getting at. Still, in an academic context I think the word 'growth' should be used to describe growth, not inflation. Perhaps at the Juncker school of politics one would come up with such cheap tricks. Still, I am not convinced he himself makes the distinction. Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted June 6, 2011 Share Posted June 6, 2011 It's not strictly true, private companies can reinvest profits into new capital equipment and hire new staff, that doesn't directly involve the government or banks as such. Twitter is a bit reductive, but he seems to be making a point about demand and implies that debt fueled government and private consumption = growth, and there is no other way. That does work for a bit as we've seen over the past decade or so, but it's not exactly sustainable if consumption always outpaces production. What he advocates has been tried before countless times, it was called The Barber Boom and "dash for growth" etc back in the day, and it worked for a bit but never ended well, but nothing ever does. We're all doomed by natural resource constraints anyway, so even if you did come up with some magical plan it'll just blow up in your face eventually. So all these theories and rants are like bearded Victorians muttering on about hairsplitting theology back in the day. The real world doesn't care. http://www.youtube.com/watch?v=IvvwNR3vF44 Yep! It's all about faith. It's a religion and he's a devoted believer. Quote Link to comment Share on other sites More sharing options...
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