-
I am just curious if the Fed's Primary Dealers make a profit (which I assume they do). If we are certain that they do, are there numbers available that explain exactly how much they make from this exclusivity? Obviously the Primary Dealers would be the first to beneft from newly created money, and...
-
Hi, I am looking for an a-priori proof that money printing always raises overall prices (even if all the printed money is hoarded and not spent). (when I say "raises prices" I mean ceteribus paribus .) I don't know if this is even true, but I am trying to prove it. I have an idea and I...
-
My economics professor keeps saying economic growth causes price inflation. Something about this does not make sense to me. If the economy is more productive, then the supply of goods is greater, so would not prices (assuming the money supply is stable) actually drop? He would argue that it is aggregate...
-
I am trying to understand how inflation contributes to trade defecits and the negative impacts inflation has on trade, who it hurts, and who benefits (especially when looking at US China relations). I have been reading this article: http://mises.org/daily/4256 But I am still very confused. How does inflation...
-
http://www.youtube.com/watch?v=Ei_B5MTJofI&feature=player_embedded And what about the argument that increasing the money rate doesn't cause inflation so long as the productive capacity increases?
-
I have been reading Hazlitt and he makes a very interesting argument about GDP: that it cannot rise unless their is inflation. Even Real GDP would not work. Real GDP attempts to take inflation out of the equation (meaning the monetary supply would be static). But if the monetary supply truly was static...
-
I know this must have been asked before, but it is a topic I still cannot wrap my mind around. From start to finish, how does this happen? Who gets the money? I know it has something to do with the Fed buying securities of some sort, and the money used to purchase them is created out of thin air. But...
-
So after reading Peter Schiff's "Crash Proof" i really want to start investing and hedge against inflation before the dollar collapses but being a student only working 5 hours a week, thousands of dollars in debt and not a lot of money to invest with. I was thinking about pulling out a...
-
I have long believed that inflation is bad. I don't intend to change my opinion, but a thought question has popped-up. Is inflation necessary to sustain employment? Currently the mindless mantra of our politicians is jobs, jobs, jobs. To " protect " jobs and encourage job " creation...
-
I'm debating someone on inflation and deflation, and we moved onto the topic of the stagflation which plagued the economy a few decades back. He says stagflation was ended by "causing a massive demand reducing recession that raised unemployment by a hell of a lot, forcing people to spend less...