Subject: From Catherine - Fwd: New Post: Quantity Theory of Money (QTM) & Its Failure

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Most people talk a lot of rubbish about inflation, QE etc - and that is because they do not understand:

1. What inflation - property inflation? Wages inflation ? exchange rate induced inflation? commodity inflation?  asset inflation, bond inflation?

2. Assets - which assets?  which country?  How is capital flowing?

3. Interest rates , tax, government spending.


Most of the articles even in the telegraph are pure nonsense.  They talk about zero inflation or low inflation - but we have had the biggest increase in property prices and rents in world history.
They talk about asset bubbles as though they are all the same.
One part of the economy can be deflating as another is inflating.








---------- Forwarded message ----------
From: AE Blog Update - No Reply <armstrongeconomics@gmail.com>
Date: Tue, Jan 23, 2018 at 6:03 AM
Subject: New Post: Quantity Theory of Money (QTM) & Its Failure
To: catherinemcannuff@gmail.com


 
 
Quantity Theory of Money (QTM) & Its Failure
Posted: 2018-01-23 00:09:32-05

QUESTION: I am most interested in your revisionist view of QTM. You debunk QTM frequently within broader topic discussions, but I’d love for you to address QTM by itself in a historical context. Perhaps starting with the Austrian darling, Henry Thornton, and his “An enquiry into the nature and effects of the paper credit of Great […]
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Comments

  1. Jeff Parkes24 January 2018 at 14:16

    The BOE uses a basket of goods and services and calculates an average, (based on the CPI) - did not get the email chain so not sure where confusion on inflation came from. However do agree that inflation per se as yawned about in the media must be considered as relative and more or less meaningless to us ordinary folk until specifics percolate into changes in interest rates and higher commodity prices.

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