Sunday, April 5, 2009

Inflation - yes or no?

Now seems to be a good time for "heterodox" economists to show their stuff: we are in the midst of a time of turmoil, a time when solid statements can be made to demonstrate utility of ones framework.

From what I read from Austrians & other heterodox economists they seem to think that inflation will increase shortly - but they also seem to hedge their beliefs by being overly vague and making no real claims. Will inflation kick in? Yes or no? Do Austrians have some sort of estimate? Time frame? If not, what exactly is the power (read: use) of "heterodox economics"? We can bicker about complexities of the world, but if you cannot make statements that are distinguishable from other points of view, what exactly distinguishes your viewpoint?

I will lay out my belief - no significant inflation will occur as we transition out of our current mess. I say this, knowing that the money supply has recently (roughly) doubled. Will an Austrian counter this claim?

1 comment:

  1. The silence speaks volumes. There is a small discussion at the economic way of thinking regarding this, but not so much.