4 ms·

There is a huge difference between moderate inflation and ruinous hyperinflation. For example, before last year Australia had gone almost 30 years without a re

There is a huge difference between moderate inflation and ruinous hyperinflation. For example, before last year Australia had gone almost 30 years without a recession [0], in large part because their central bank's inflation target is a few points higher than the US's hard 2% ceiling. This gives their bank more flexibility in controlling the money supply. That kind of stability is more beneficial to the middle class than any negatives that may come with that level of inflation. [0] https://www.nytimes.com/2020/09/02/business/australia-recession.html https://www.nytimes.com/2020/09/02/business/australia-recess...

barrenko 5y ago
Not sure why you're so downvoted.
- fouric 5y ago
  "Please don't comment about the voting on comments. It never does any good, and it makes boring reading."[1] And if you're going to break the guidelines and comment on voting anyway, the very least that you could do is also add some value to the discussion, e.g. add some thoughts/elaboration/support for the points made. [1]https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
roenxi 5y ago
> For example, before last year Australia had gone almost 30 years without a recession [0], in large part because their central bank's inflation target is a few points higher than the US's hard 2% ceiling. Australia has gone 30 years without recession because we're supplying commodities like iron into the most miraculously productive miracle in all of recorded history, aka mainland China. And because we've got one of the highest rates of net migration in the developed world. On a per capita basis Australia has had recessions, and it is a stretch to say that our inflation target did anything relative to all the other countries that have inflation targets.

4 ms·

There is a huge difference between moderate inflation and ruinous hyperinflation. For example, before last year Australia had gone almost 30 years without a re

by blacksqr 5y ago

barrenko 5y ago
Not sure why you're so downvoted.
- fouric 5y ago
  "Please don't comment about the voting on comments. It never does any good, and it makes boring reading."[1] And if you're going to break the guidelines and comment on voting anyway, the very least that you could do is also add some value to the discussion, e.g. add some thoughts/elaboration/support for the points made. [1]https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
roenxi 5y ago
> For example, before last year Australia had gone almost 30 years without a recession [0], in large part because their central bank's inflation target is a few points higher than the US's hard 2% ceiling. Australia has gone 30 years without recession because we're supplying commodities like iron into the most miraculously productive miracle in all of recorded history, aka mainland China. And because we've got one of the highest rates of net migration in the developed world. On a per capita basis Australia has had recessions, and it is a stretch to say that our inflation target did anything relative to all the other countries that have inflation targets.