Re:Milton Friedman’s Interest Rate Fallacy
by throw0101a on Tuesday January 11, 2022 @07:45AM
(#29890852)
> The inflation of the 70s wasn't caused by the cost/availability of credit, it was caused by the fact that oil prices jumped from an average of $4 in 1973 to $13 in 1974.
> For some reason we're supposed to pretend this had no significant effect on prices in an economy largely powered by oil.
Because there are different types, or sources, of inflation:
And not all of them are caused interest rates and the availability of credit.
> It's baffling that educated adults can still take this seriously.
Perhaps the adults who take this seriously have better educated themselves on the topic. If the experts in a field hold a different view than you, it is often prudent to examine whether you're missing something.
> For some reason we're supposed to pretend this had no significant effect on prices in an economy largely powered by oil.
Because there are different types, or sources, of inflation:
* https://en.wikipedia.org/wiki/Demand-pull_inflation
* https://en.wikipedia.org/wiki/Cost-push_inflation
* https://en.wikipedia.org/wiki/Built-in_inflation
* https://en.wikipedia.org/wiki/Inflation#Keynesian_view
And not all of them are caused interest rates and the availability of credit.
> It's baffling that educated adults can still take this seriously.
Perhaps the adults who take this seriously have better educated themselves on the topic. If the experts in a field hold a different view than you, it is often prudent to examine whether you're missing something.