Source link: http://archive.mises.org/14626/quantitative-easing-explained/
Quantitative Easing Explained
Previous post: State Antitrust (anti-monopoly) law versus state IP (pro-monopoly) law
Next post: Mises Wiki: One Week Anniversary
The Ludwig von Mises Institute
Tu Ne Cede Malis
Advancing the Scholarship of Liberty in the Tradition of the Austrian School
{ 23 comments }
He he.. “The Ben Bernank” “The Goldman Sachs”
funny
Hahahaha! I love it. Three cheers.
I don’t think it’s intellectually healthy to concentrate on the fed’s motives rather than their arguments. I think everyone here knows the argument for quantitative easing isn’t as simple as “Low prices bad! High prices good!”
Of course, yet another keynesian refutation wouldn’t have been nearly as fun.
Most people don’t respond to policy rebuttals but to creating phantom motives and attacking them.
Two wrongs don’t make a right.
Are these really phantom motives though? Is the information not correct? Is the head of the New York fed not a former Sachs employee and is QE not going to involve purchases of bonds from Sachs to their own profit? At the very least this creates the appearance of a conflict of interest. Perhaps the motive really is some altruistic nature seeking to increase lending for most in the Fed. But there are almost some people in this structure who really understand that it’s not helping people.
We have electricity because power plants want our money. Therefore, having electricity is a bad thing.
We economists, of all people, should understand motives mean jack. An action can only be judged by its consequences. I certainly agree the fed’s actions are motivated by some quite unsavory goals. I also agree QE2 is a very horrible, dangerous thing. But the former does not imply the latter.
A great skit.
The government introduced an alternate inflation reality when it enacted the findings of the Boskin Commission. They used pseudo-science to make inflation appear less than it really is so they could cut Social Security benefits without people noticing.
The disconnect we’re seeing today is the result of years of using skewed inflation data.
Not only are Bernanke and company going in the wrong direction they’re using the CPI data a if it were factual. So they’re doing the wrong thing and using bad data to justify it.
it’s an old practice within ‘governments’ that usually leads to bigger disaster….anyway they are appointed only for few years, or less, and don’t really care what will happen in few years time…
there are many people just now getting exposed to Austrian Eco, the majority of which would benefit greatly by more of these simple, effective, 5 min clips, so easy for the beginners to understand….thnx
Nice vids… If only it wasn’t for that awful voice-gen…
I was irritated by it. That text-to-voice thing is too annoying to listen to.
I love the deadpan, emotionless voices. The key to making them humorous is to revel in how awkward they sound. An easy way to do this is to make their speech “inflated” and far from the usual conversational speech.
I’m surprised I’ve never seen a voice-rendering program that supports IPA; Supersegmentals could handle these problems perfectly.
there are many people just now getting exposed to Austrian Eco, the majority of which would benefit greatly by more of these simple, effective, 5 min clips, so easy for the beginners to understand….thnx Hear, hear, michael pacifico.
I first saw this 18 hours ago. It had 15,000 or so hits. I posted it to my blog a few hours later, by which time it was up to 44,000 or so. Now, not yet 24 hours later, it’s up to 89,000. C’mon, guys, can we get it up to 600 billion? How ’bout 2 trillion? Repeat after me: “Deficits don’t matter and yes we can.”
Tech question: can anyone suggest why I can post a comment here via IE8, but not when using my preferred Firefox 3.6.12 (both for windoze)? I’ve noticed this just recently, since Firefox upgraded itself. I also couldn’t post a comment to another blog last night.
I can do so just fine. Have you tried a fresh profile?
How do I do that?
A handy guide to Firefox profile management.
If this works, many thanks to Seattle
“maybe because he has a nice beard”
LOVE IT!
This was great. I’m not an economist but I do have an interest in economics and this really hit the spot. Humerus and informative. Kudos to whomever produced it.
Wonderful. 4 chears.
There are a lot of myths out there. This is easily one of the most useful articles I’ve read this year. Thanks for writing this post.
Comments on this entry are closed.