Republican Panic Caused Inflation - Thanks Fox!

[two_iron]

Studies show that Republican panic about the economy and their economic expectations actually caused inflation. Republicans projected outlandish inflation fears and the authors say that these inflationary expectations actually turned into inflation:

“We find strong positive and significant effects of inflation expectations on inflation itself.... A one percentage-point increase in 1-year or 5-year inflation expectations lead to a 1.3 or 2.3 percentage point increase in inflation, respectively.”

They figure that inflation would have topped out around 5% and would currently be at 1.7% under rational expectations.

The results are quite eye opening. If the paper is right, we're paying a huge price for the Trump/Fox-induced economic panic that continues to irrationally infest Republican voters.

Study suggests Republican panic caused recent inflation - Kevin Drum

 

[bigrebnc1775]

Trump had no clue how to grow the economy.

He only knew how to artificially juice GDP by massively increasing government spending and printing money.

Despite his best effort, he never got close to his promised 4 to 6 percent GDP growth.

Poor guy voters know what things cost when trump was president, and they know what things cost while Biden is president. Game set and match

Trump 47

 

[g5000]

Call them what you want they feel the pain everytime they make a purchase. Are you going to say the pain the feel isn't real?

The pain is real, but they are misplacing the blame.

As I said, your propagandists are taking advantage of your ignorance.

 

[Toddsterpatriot]

I can't deal with this kind of willful ignorance any more. You're on your own.

Zombie Concepts: Velocity of Money​

Published on January 19, 2021 by Joseph Wang Free

In this series I will talk about dead macro concepts that refuse to die. Today’s installment of Zombie Concepts features the velocity of money – a concept often discussed but easily shown to be useless. I will draw heavily from a excellent recent IMF paper on the subject by central banking expert Peter Stella et al. Basically, the velocity of money is a useless concept because it is not stable nor mean reverting. It cannot be used to link money supply to GDP. It is not stable because 1) its measurement does not include transactions that do not contribute to GDP, and 2) it’s affect by technological changes. There is no justification in thinking that velocity will eventually rises, leading to higher GDP growth on account of the larger M2 money stock.

Zombie Concepts: Velocity of Money

This post describes why the velocity of money is a dead concept that should be forgotten.

fedguy.com

 

[Toddsterpatriot]

sigh

The velocity of money is measuring the velocity of M2.

All caught up now?

Velocity of Money Excludes Non-GDP transactions​

The earliest form of the velocity of money was formulated to show a relationship between the quantity of money and the value of all transactions. This is very different from the current formulation, which draws a relationship between the quantity of money and GDP, which is the income of a country. GDP only includes transactions that contribute to the final demand for goods and services, but does not include things like buying TSLA call options. Buying a brand new construction house would contribute to GDP, but buying a house already built would not contribute to GDP (it’s already built, so no new labor or materials expenditures. See also this excellent piece by Richard Werner on the topic.)

Zombie Concepts: Velocity of Money

This post describes why the velocity of money is a dead concept that should be forgotten.

fedguy.com

 

[g5000]

Poor guy voters know what things cost when trump was president, and they know what things cost while Biden is president. Game set and match

Trump 47

The voters knew well enough to kick Trump's tiny balls over the moon in 2020.

If they elect him again, they deserve everything that happens to them.

This time I really, really will repeal and replace Obamacare, pay off the debt, reduce the trade deficit with China and Mexico, build the Wall and make Mexico pay for it, bring back coal jobs, remove all illegal aliens, and grow the economy by 4 to 6 percent every year! Bleev me, folks. Bleev me. Bleev me. That I can tell you.

[chant]
FOOL ME TWICE! FOOL ME TWICE! FOOL ME TWICE!

 

[OKTexas]

Ok. Explain to me how it happened genius.

Inflation = too much money chasing too few goods. Expectations play no roll. With less money or more goods, inflation can't exist. It's simple economics.

.

 

[John Edgar Slow Horses]

The post-Biden economic woes were never ours, but we were quite fortunate.

If Trump had been re-elected, almost everybody may have been underwater.

 

[John Edgar Slow Horses]

Inflation = too much money chasing too few goods. Expectations play no roll. With less money or more goods, inflation can't exist. It's simple economics.

.

So no one is at fault, is your point? You are not being honest.

 

[Cellblock2429]

Studies show that Republican panic about the economy and their economic expectations actually caused inflation. Republicans projected outlandish inflation fears and the authors say that these inflationary expectations actually turned into inflation:

“We find strong positive and significant effects of inflation expectations on inflation itself.... A one percentage-point increase in 1-year or 5-year inflation expectations lead to a 1.3 or 2.3 percentage point increase in inflation, respectively.”

They figure that inflation would have topped out around 5% and would currently be at 1.7% under rational expectations.

The results are quite eye opening. If the paper is right, we're paying a huge price for the Trump/Fox-induced economic panic that continues to irrationally infest Republican voters.

Study suggests Republican panic caused recent inflation - Kevin Drum

View attachment 952838

/——/ What a stinking load of Hillary

 

[OKTexas]

So no one is at fault, is your point? You are not being honest.

If you think you've read my posts and got that out of them, your comprehension skills are severely lacking. Try going back and read my first post in the thread.

.

 

[John Edgar Slow Horses]

If you think you've read my posts and got that out of them, your comprehension skills are severely lacking. Try going back and read my first post in the thread.

.

So no one is at fault.

 

[OKTexas]

So no one is at fault.

Wrong again commie, it's xiden and you commiecrats fault for flooding the market with trillions of dollars. You really are stupid with no grasp of economic concepts. Run along troll.

.

 

[Toddsterpatriot]

So no one is at fault, is your point? You are not being honest.

Biden policies that increased money supply or reduced GDP are to blame.

 

[citygator]

Changing everything trump did that policy
You're not going to convince me or the 65% who believe Biden is a failure but do keep going we need a good laugh at the village idiot.

So you got nothing but cult talk. Ok. Prepare yourself for the election.

 

[citygator]

Poor guy voters know what things cost when trump was president, and they know what things cost while Biden is president. Game set and match

Trump 47

Sure. They also are making $10,000 or more higher wages too And traveling a record amount and owning a home at record levels. Nice to be in this economy vs Trumps.

 

[HikerGuy83]

Sure. They also are making $10,000 or more higher wages too And traveling a record amount and owning a home at record levels. Nice to be in this economy vs Trumps.

Still pushing this lie.

 

[HikerGuy83]

your comprehension skills are severely lacking.

You nailed it.

 

[HikerGuy83]

The voters knew well enough to kick Trump's tiny balls over the moon in 2020.

If they elect him again, they deserve everything that happens to them.

This time I really, really will repeal and replace Obamacare, pay off the debt, reduce the trade deficit with China and Mexico, build the Wall and make Mexico pay for it, bring back coal jobs, remove all illegal aliens, and grow the economy by 4 to 6 percent every year! Bleev me, folks. Bleev me. Bleev me. That I can tell you.

[chant]
FOOL ME TWICE! FOOL ME TWICE! FOOL ME TWICE!

Looking forward to having him back.

 

[citygator]

Inflation = too much money chasing too few goods. Expectations play no roll. With less money or more goods, inflation can't exist. It's simple economics.

.

We had less goods. Not more money. Has nothing to do with easy money.