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| donal sutherland, girl power by hillary carlip, race, michael moore, insult, whitehouse.gov, musician jokes, humor, online music, francs2000, white civil rights, dermot mulroney, dennis hopper, extremist, ryan bowker, contemporary, | Re: Ivory towers by 0tim0 at Fri 2 Sep 10:31pmscore of 1 in reply to comment 138 Hmmm. Well, seth green it seems that you are saying that the effect of inflation seth green is the same in both cases. It's just that the cause in the one case, rising wages, is good. So that cancels out the bad effects. Working backwards, that is the third issue. The second issue here is whether inflation is good or bad. As you said, anticipated inflation is not so bad seth green (but only if it's small). And in fact, negative or no inflation has a dampening affect on the economy (why buy now if it'll be cheaper tomorrow?) Ideally, a small amount of consistant inflation is preferable. Upthread you presented a fairly rosey view of unanticipated inflation. What you said was true, at the same time you didn't tell the whole story. |
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| Re: Ivory towers by Megabazus at Fri 2 Sep 5:22pmscore of 1 in reply to comment 137 I'm glad you asked because I don't think I made this sufficiently clear. When demand-pull inflation is in effect, the primary cause is low unemployment. contemporary This means fewer people living off social welfare programs, and more production in the economy. Greater competition for labor between firms during these periods of low unemployment is contemporary what keeps wages rising along with inflation. In contemporary a sense, a high unemployment rate is a tool for firms to keep wages low. When inflation driven by cost-push (rising oil prices) is in effect, prices rise without any accompanying gains in productivity or wages (there is no greater competition for labor just because oil prices went up.) [ ...reply just to this | comment on the story... | next new ] 139. |
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