NetNews Usenet Archive 1993 #1/NN_1993_1.iso/spool/sci/econ/9572

Text File | 1993-01-04 | 3.4 KB | 70 lines

Newsgroups: sci.econ
Path: sparky!uunet!gatech!concert!samba!usenet
From: [e-mail] (Robert Vienneau)
Subject: Re: Inflation (was Re: GM Plant Closures Again? Won't Solve the Economic Problems
Message-ID: <[e-mail]>
Sender: [e-mail]
Nntp-Posting-Host: lambada.oit.unc.edu
Organization: University of North Carolina Extended Bulletin Board Service
References: <[e-mail]> <[e-mail]> <[e-mail]>
Date: Mon, 4 Jan 1993 22:33:00 GMT
Lines: 57

In article <[e-mail]> [e-mail] (James F. Hranicky) writes:
>In article <[e-mail]> [e-mail] (Robert Vienneau) writes:
>
>>The purpose of pointing out the above is to show that the experts
>>disagree on practically everything about inflation. So we have lots of
>>theories to choose from. I personally prefer Post-Keynesianism.
>>
>>                                      Robert Vienneau
>
>I refer readers again to the CPI for the past two centuries. The general
>rise in prices of all goods and services is attributed to an increase in
>the money supply (the original meaning of inflation.) Notice that
>prices jump during the war of 1812, when the BUS printed money to help
>finance the war. Notice that prices jump after 1860, when the U.S. govt
>issued $400 million in fiat moeny (greenbacks). Notice that the price
>level takes off after 1913, when the inflationary Federal Reserve system
>was installed, and with the exception of the Great depression, prices have
>risen steadily since, really taking off after 1971, when the U.S. abandoned
>the international gold standard (this was the cause of the inflation of the
>70's--not oil shocks, etc.)
>
>I don't know much about Post-Keynesianism, but if it resembles Keynesiansm
>at all I would tend to discard it.
>
>I personally prefer the Austrian school of Economics as espoused by
>von Mises, von Hayek, Henry Hazlitt, Murray Rothbard, George Reisman,
>etc.
>
>Jim Hranicky ([e-mail])
>

Your preference for Austrian economics may explain your editing
abilities. My original post provided a non-monetary institutional
explanation for why price trends were different in the 19th century from
the 20th. Your CPI evidence is cited among at least one of
Post-Keynesians I originally referenced.

And I doubt you can explain what Keynes' theory was in any way that I
would find coherent. Based on a survey of one, I have found even graduate
students at Chicago cannot, although at least they are aware there's a
large debate about the relationship of Keynes to various theories known
as "Keynesian." This debate also extends to the relationship between his
ideas and the political views often assigned to his name.

If your reading is limited to introductory textbooks and Austrians, I
know you will not have encountered an adequate explaination of Keynes.
With the exceptions of Hayek, Schumpeter, and the first 2 generations, I
have not found Austrians to be particularly competent scholars. In
particular, von Mises' Human Action is terrible.

                                  Robert Vienneau

--
   The opinions expressed are not necessarily those of the University of
     North Carolina at Chapel Hill, the Campus Office for Information
        Technology, or the Experimental Bulletin Board Service.
           internet:  laUNChpad.unc.edu or 152.2.22.80