Comments on: Understanding Inflation http://indessed.com/roscivs/2007/10/26/understanding-inflation/ a little poison now and then, that makes for pleasant dreams Tue, 18 Nov 2008 09:24:54 +0000 http://wordpress.org/?v=2.6.1 By: roscivs http://indessed.com/roscivs/2007/10/26/understanding-inflation/#comment-420 roscivs Sun, 28 Oct 2007 04:16:13 +0000 http://indessed.com/roscivs/2007/10/26/understanding-inflation/#comment-420 "BTW, does the Austrian School want a return to the gold standard?" Indeed it does. I personally think it's a mistake; that would return us to the old "boom and bust" cycle. The Austrian School, of course, thinks this is inevitable anyway and we're just making it worse by interfering, but I'm not so certain. Mises.org is the place to read their economic ideas, e.g.: http://www.mises.org/rothbard/genuine.asp “BTW, does the Austrian School want a return to the gold standard?”

Indeed it does. I personally think it’s a mistake; that would return us to the old “boom and bust” cycle. The Austrian School, of course, thinks this is inevitable anyway and we’re just making it worse by interfering, but I’m not so certain. Mises.org is the place to read their economic ideas, e.g.:
http://www.mises.org/rothbard/genuine.asp

]]> By: sealion http://indessed.com/roscivs/2007/10/26/understanding-inflation/#comment-413 sealion Sat, 27 Oct 2007 07:06:45 +0000 http://indessed.com/roscivs/2007/10/26/understanding-inflation/#comment-413 Another point worth mentioning explicitly (it's implied in your analysis, of course) is that the nominal price of goods and the real price (relative to average buying power) are not at all the same thing. Mostly things /don't/ get more expensive. They get cheaper (in both senses of the word, all too often). In the developed world food is so cheap that obesity is prevalent among the lowest economic classes of society, and virtually no-one is so poor as to be unable to buy a color television. BTW, does the Austrian School want a return to the gold standard? Another point worth mentioning explicitly (it’s implied in your analysis, of course) is that the nominal price of goods and the real price (relative to average buying power) are not at all the same thing. Mostly things /don’t/ get more expensive. They get cheaper (in both senses of the word, all too often). In the developed world food is so cheap that obesity is prevalent among the lowest economic classes of society, and virtually no-one is so poor as to be unable to buy a color television.

BTW, does the Austrian School want a return to the gold standard?

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