8 ms·

Monetary Base != Money Supply M2 money supply, please read the part where the formula changed in 2020: https://fred.stlouisfed.org/series/M2SL https://fred.stl

Monetary Base != Money Supply M2 money supply, please read the part where the formula changed in 2020: https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL > I know that most people say that M0 is only a small factor in price increase and other factors like credit given by banks, the speed at which money moves and spendin/saving behavior play a bigger role. But I doubt that. Please don’t take offense, but I doubt that you understand what you’re talking about given the fact that you confused monetary base and money supply.

kranke155 3y ago
It’s a peak Hn comment. “I’m not an economist but here is my …” edit Joseph Stiglitz, Nobel Prize winning economist, has said that most of the inflation we saw was markups - ie firms raising their prices due to inadequate amount of competition. Here is an 50 min long talk on the subject https://www.youtube.com/watch?v=4BAsZIHp9HI&t=1217s https://www.youtube.com/watch?v=4BAsZIHp9HI&t=1217s
- bcrosby95 3y ago
  Call Ripley's believe it or not, someone on the Internet is talking about something they aren't an expert in!
  - kranke155 3y ago
    HN is particularly arrogant about some subjects, because it seems like having read a few papers, some people think they know more than experts in the field. Often times they seem to have just read the papers that justify something they already believe in. Economics in particular is not a science and extremely dangerous one to have "opinions" about, since I feel like it's got a heavy ideological bent forced unto it due to political considerations. There are economists like Steve Keen and Joseph Stiglitz who seem to make sense to me, and then there seems to be a lot of gobblygook. But I'm not an expert nor would I say I categorically know what I'm talking about in this area. I just try my best to listen.
    - latency-guy2 3y ago
      > I just try my best to listen. > There are economists like Steve Keen and Joseph Stiglitz who seem to make sense to me, and then there seems to be a lot of gobblygook. Seems at odds. Even further when you say: > Often times they seem to have just read the papers that justify something they already believe in. Economics in particular is not a science and extremely dangerous one to have "opinions" about, since I feel like it's got a heavy ideological bent forced unto it due to political considerations. > HN is particularly arrogant about some subjects, because it seems like having read a few papers, some people think they know more than experts in the field. Apt. Just wish it would apply to you and not everyone else.
      - kranke155 3y ago
        I am quoting experts in the field, and using their own presentations on the subject. I am not an expert in economics, just an interested reader. It is entirely possible I am also falling victim to the same trap, that's not something I would ever deny. But repeating what you heard from an economist in a mainstream publication just leads to mostly repeating falsehoods, since economists who get heard in the mainstream media seem to me to be often ideological.
        imtringued 3y ago
        There is a guy on YouTube who studied economics and he became a trader on Wallstreet. His opinion is basically that the most realistic career option of an Economist is to work at a central bank or at an investment firm. The ones who work at the central bank can't criticise their employer. There was this Economist Richard Werner who has shown that the causality is from growth to interest. I.e. higher growth leads to higher interest. The problem is that this is at odds with the theory of the central bank lowering interest rates to stimulate the economy. It means that this policy tool is kind of meaningless. The Fed is just following the market. You can't publish this as an economist since it is basically saying "We are incompetent and we don't know what we are doing."
        3y ago
- HEmanZ 3y ago
  These comments at least try to use real economics, even when amateur. Its refreshing when the vast majority of online discourse about inflation is just shouting “We have inflation because business are so much more greedy than they have EVER been!!!!”
  - kranke155 3y ago
    Joseph Stiglitz, Nobel Prize winning economist, has said that most of the inflation we saw was markups - ie firms raising their prices due to inadequate amount of competition. Here is an 50 min long talk on the subject https://www.youtube.com/watch?v=4BAsZIHp9HI&t=1217s https://www.youtube.com/watch?v=4BAsZIHp9HI&t=1217s Let me know where he's wrong.
    - HEmanZ 3y ago
      I’m not sure what argument you think I’m making, what argument you think he’s making, and what argument you think you’re making, that deserves a mic drop. His point is basically that the most recent inflation was caused by a supply shock and high uncertainty, not aggregate demand from fiscal policy, and that broad monetary tightening is a worse strategy for calming this kind of inflation than <insert set of> targeted policies. None of this is “evil corporation have monopoly.” The example he even uses for service side under-supply is a local mechanic, hardly what people think of as “big business monopoly” He was wrong about not getting real wage growth, which did appear just months after this was posted, and is now back on track. But it’s not key to his argument, just an interesting thing I noticed.
      - kranke155 3y ago
        Ah fair. You actually watched it! I watched it months ago and I had the idea that he said that most of inflation was markups due to lack of competition. But I might be thinking of someone else, like Steve Keen.
    - refurb 3y ago
      You know how else is a Nobel Prize winner in economics? Paul Krugman Don't fall for the "appeal to authority" fallacy.
- DeathArrow 3y ago
  >firms raising their prices due to inadequate amount of competition. In a free market you can't have an inadequate amount of competition. If he is right, it means that regulations hampered competition.
  - adrianN 3y ago
    There are no free markets outside of econ 101.
    - Jensson 3y ago
      So why didn't prices rice before covid? Something changed, and it wasn't companies suddenly being more greedy.
      - kranke155 3y ago
        The supply shock led to an increase in prices, which then led them to realising they could increase the prices even more.
      - adrianN 3y ago
        What regulations that hinder competition have been added since Covid?
    - imtringued 3y ago
      In fact, one of the ways to anger a neoclassical economist is by arguing that inflation is impossible in an equilibrium economy with perfect information, because nobody is dumb enough to accept worthless money.

kranke155 3y ago

It’s a peak Hn comment. “I’m not an economist but here is my …” edit Joseph Stiglitz, Nobel Prize winning economist, has said that most of the inflation we saw was markups - ie firms raising their prices due to inadequate amount of competition. Here is an 50 min long talk on the subject https://www.youtube.com/watch?v=4BAsZIHp9HI&t=1217s https://www.youtube.com/watch?v=4BAsZIHp9HI&t=1217s

bcrosby95 3y ago
Call Ripley's believe it or not, someone on the Internet is talking about something they aren't an expert in!
- kranke155 3y ago
  HN is particularly arrogant about some subjects, because it seems like having read a few papers, some people think they know more than experts in the field. Often times they seem to have just read the papers that justify something they already believe in. Economics in particular is not a science and extremely dangerous one to have "opinions" about, since I feel like it's got a heavy ideological bent forced unto it due to political considerations. There are economists like Steve Keen and Joseph Stiglitz who seem to make sense to me, and then there seems to be a lot of gobblygook. But I'm not an expert nor would I say I categorically know what I'm talking about in this area. I just try my best to listen.
  - latency-guy2 3y ago
    > I just try my best to listen. > There are economists like Steve Keen and Joseph Stiglitz who seem to make sense to me, and then there seems to be a lot of gobblygook. Seems at odds. Even further when you say: > Often times they seem to have just read the papers that justify something they already believe in. Economics in particular is not a science and extremely dangerous one to have "opinions" about, since I feel like it's got a heavy ideological bent forced unto it due to political considerations. > HN is particularly arrogant about some subjects, because it seems like having read a few papers, some people think they know more than experts in the field. Apt. Just wish it would apply to you and not everyone else.
    - kranke155 3y ago
      I am quoting experts in the field, and using their own presentations on the subject. I am not an expert in economics, just an interested reader. It is entirely possible I am also falling victim to the same trap, that's not something I would ever deny. But repeating what you heard from an economist in a mainstream publication just leads to mostly repeating falsehoods, since economists who get heard in the mainstream media seem to me to be often ideological.
      - imtringued 3y ago
        There is a guy on YouTube who studied economics and he became a trader on Wallstreet. His opinion is basically that the most realistic career option of an Economist is to work at a central bank or at an investment firm. The ones who work at the central bank can't criticise their employer. There was this Economist Richard Werner who has shown that the causality is from growth to interest. I.e. higher growth leads to higher interest. The problem is that this is at odds with the theory of the central bank lowering interest rates to stimulate the economy. It means that this policy tool is kind of meaningless. The Fed is just following the market. You can't publish this as an economist since it is basically saying "We are incompetent and we don't know what we are doing."
        3y ago
HEmanZ 3y ago
These comments at least try to use real economics, even when amateur. Its refreshing when the vast majority of online discourse about inflation is just shouting “We have inflation because business are so much more greedy than they have EVER been!!!!”
- kranke155 3y ago
  Joseph Stiglitz, Nobel Prize winning economist, has said that most of the inflation we saw was markups - ie firms raising their prices due to inadequate amount of competition. Here is an 50 min long talk on the subject https://www.youtube.com/watch?v=4BAsZIHp9HI&t=1217s https://www.youtube.com/watch?v=4BAsZIHp9HI&t=1217s Let me know where he's wrong.
  - HEmanZ 3y ago
    I’m not sure what argument you think I’m making, what argument you think he’s making, and what argument you think you’re making, that deserves a mic drop. His point is basically that the most recent inflation was caused by a supply shock and high uncertainty, not aggregate demand from fiscal policy, and that broad monetary tightening is a worse strategy for calming this kind of inflation than <insert set of> targeted policies. None of this is “evil corporation have monopoly.” The example he even uses for service side under-supply is a local mechanic, hardly what people think of as “big business monopoly” He was wrong about not getting real wage growth, which did appear just months after this was posted, and is now back on track. But it’s not key to his argument, just an interesting thing I noticed.
    - kranke155 3y ago
      Ah fair. You actually watched it! I watched it months ago and I had the idea that he said that most of inflation was markups due to lack of competition. But I might be thinking of someone else, like Steve Keen.
  - refurb 3y ago
    You know how else is a Nobel Prize winner in economics? Paul Krugman Don't fall for the "appeal to authority" fallacy.
DeathArrow 3y ago
>firms raising their prices due to inadequate amount of competition. In a free market you can't have an inadequate amount of competition. If he is right, it means that regulations hampered competition.
- adrianN 3y ago
  There are no free markets outside of econ 101.
  - Jensson 3y ago
    So why didn't prices rice before covid? Something changed, and it wasn't companies suddenly being more greedy.
    - kranke155 3y ago
      The supply shock led to an increase in prices, which then led them to realising they could increase the prices even more.
    - adrianN 3y ago
      What regulations that hinder competition have been added since Covid?
  - imtringued 3y ago
    In fact, one of the ways to anger a neoclassical economist is by arguing that inflation is impossible in an equilibrium economy with perfect information, because nobody is dumb enough to accept worthless money.