{"id":15868,"date":"2014-01-20T16:23:11","date_gmt":"2014-01-20T21:23:11","guid":{"rendered":"http:\/\/ssgreenberg.name\/PoliticsBlog\/?p=15868"},"modified":"2014-01-20T16:23:11","modified_gmt":"2014-01-20T21:23:11","slug":"deflation-the-failed-macroeconomic-paradigm-plumbs-new-depths-of-self-parody","status":"publish","type":"post","link":"https:\/\/ssgreenberg.name\/PoliticsBlog\/2014\/01\/20\/deflation-the-failed-macroeconomic-paradigm-plumbs-new-depths-of-self-parody\/","title":{"rendered":"Deflation: The Failed Macroeconomic Paradigm Plumbs New Depths of Self-Parody"},"content":{"rendered":"<p><em>New Economic Perspectives<\/em> has the William Black article <a title=\"New Economic Perspectives article\" href=\"http:\/\/neweconomicperspectives.org\/2014\/01\/deflation-failed-macroeconomic-paradigm-plumbs-new-depths-self-parody.html\" target=\"_blank\"><strong>Deflation: The Failed Macroeconomic Paradigm Plumbs New Depths of Self-Parody<\/strong><\/a>.<\/p>\n<blockquote><p>As crazed and destructive as the quacksterians are, the \u201cwait for it\u201d deflationauts bring a degree of nuttiness to the economic ER that causes one to be stunned and horrified.\u00a0 For the deflationaut economists to figure out (finally!) that deflation is deadly they have to understand something about inadequate demand.\u00a0 The WSJ article shows that their rationale for warning (but not acting!) against \u201cthe threat of deflation\u201d is based on the effect of deflation on demand.<\/p>\n<blockquote><p>\u201c[D]eflation can be difficult to escape because households and firms postpone purchases in the hope that goods and services will be cheaper in the future, thereby further weakening demand and pushing prices down.\u201d<\/p><\/blockquote>\n<p>Note that this passage implicitly admits that \u201cweak demand\u201d \u201cpush[es] prices down.\u201d Inadequate demand, therefore, is what causes deflation.<\/p><\/blockquote>\n<p>Don&#8217;t you wish William Black wouldn&#8217;t mince words, but would tell you what he really thinks about the quacksterians? \ud83d\ude42<\/p>\n<p>It is amazing how people can claim that Keynesian economics is complete bullshit while using Keynesian economic principles to explain what is going on in the economy. Makes one wonder how their minds work, if they work at all.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Economic Perspectives has the William Black article Deflation: The Failed Macroeconomic Paradigm Plumbs New Depths of Self-Parody. As crazed and destructive as the quacksterians are, the \u201cwait for it\u201d deflationauts bring a degree of nuttiness to the economic ER that causes one to be stunned and horrified.\u00a0 For the deflationaut economists to figure out [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[],"class_list":{"0":"post-15868","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-stevegsposts","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/15868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/comments?post=15868"}],"version-history":[{"count":1,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/15868\/revisions"}],"predecessor-version":[{"id":15869,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/15868\/revisions\/15869"}],"wp:attachment":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/media?parent=15868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/categories?post=15868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/tags?post=15868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}