Friday, July 15, 2011

On the Asymmetric Response to Inflation Data.

Headline CPI has fallen by .2%. OMG!  Its the Great Depression all over again! Sell all your gold!  The Fed needs to print more money!

I expect to hear from John Cochrane today that we should raise taxes to avoid the clearly inevitable deflationary spiral about to grip the nation.


  1. Off topic: You'd probably find Mike Beggs' thesis, Inflation and the Making of Macroeconomic Policy in Australia, 1945-85, of interest.

    And Beggs understands Sraffa's price theory, Milgate's reading of Keynes, etc. Do you realize that many professors at the New School understand this stuff too?

  2. Yeah, of course. A lot of the people involved in the capital controversy debate are still teaching (though nearing retirement!)