Saturday, September 4, 2010

Who you calling John Law?

Alternative titles considered for this blog post:

1. Austrians say the darndest things, and
2. Silly Austrians, BPS are for Keynes!

Anyway - Jonathan Catalan seems to think the move from LM2 to LM3 in Figure 1 and from LM1 to LM2 in Figure 2 are the same thing. I'm not sure why he would think such a thing. I mean just look at them! They look really, really different, right? What's the deal Jonathan?


4 comments:

  1. Can you tell us why you think they are different?

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  2. Um, from those graphs there's no reason to think they're different. In any case, I'm really not sure what you're getting at (too much money is obviously bad, but a little increase in the supply of money is good?).

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  3. Two commenters don't think those are different?

    Really?

    Am I drinking crazy juice here? I thought this would be a blatantly obvious zinger.

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  4. ...which is why I took the liberty of prefacing it with all that goofy stuff

    ReplyDelete

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