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I am starting to have difficulty believing that it indicates more productivity. I considered two cases where productivity of the worker doubles, and consider its long term influence on the GDP. Case 1 : Limited demand for item: In this extreme, the demand for the item is completely limited at the current...
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http://www.economicpolicyjournal.com/2011/08/case-for-25000-per-ounce-gold.html I came across the above link (article text below) on Robert Wenzel's site yesterday. My comments are in bold & italics. I'm hoping some people will want to address my questions or make additional comments. Gold...
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Whenever discussing the Great Depression, it is always argued that high interest rates imposed during the Great Depression (Specifically 1931) worsened the Depression because investment was curtailed. This of course seems to run contrary with what an Austrian would argue. There was obviously credit inflation...
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Now I understand of course supply and demand, and that as an economy is more productive prices decrease. However, will not other prices have to increase as well if the money supply is constant? When talking about rising prices, the argument is that prices cannot all rise (thus causing a net increase...
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What if Paul Volcker hadn't tried to squeeze inflation out of the economy by pushing the Fed Funds rate to 20% in the period 1979-83? How did this effort change history? The driving force in this simulation is the price level p. It is assumed that inflation starting in 1940 is a constant 4% per year...
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People say that rising prices are not as bad now because banks are not lending all the money. That makes sense, but they are still lending a ton, at least according to this graph. http://research.stlouisfed.org/fred2/series/TOTLL?cid=100 I am confused about why prices are not higher if there is still...
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I honestly could not believe my eyes when I read his post. I started to challenge him, and the converstation grew even more ridiculous. I have no idea how to respond anymore. I know what I want to say, I just can't say it right. Here is the conversation, with me and a poster who I will called "Keynes...
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Hello, I'm a newbie in the Austrian School of thinking. I'm reached the chapter in my non-Austrian required textbook dealing with economic principles. The book, which hasn't taken any stance but just presents the readers with various theories, says that one cause of inflation could be unemployment...
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Hello, I was hoping some Austrian advocates could help explain this to me. I recently came across this quote by G. Edward Griffin who wrote the book The Creature from Jekyll Island the infamous book on the Federal Reserve ( http://en.wikipedia.org/wiki/G._Edward_Griffin ) though I do not have this book...
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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...