L.A. Liberty

A Libertarian in Leftywood

letterstomycountry:

Under Austrian orthodoxy, the money supply works in extraordinarily predictable ways: namely, if you increase it, inflation follows.  Austrians have always defined inflation solely as an increase in the money supply.  

A quick point: yes indeed “Austrians have always defined inflation solely as an increase in the money supply.” But then again, so did everyone else. I’ve discussed this before:

Even Keynes himself defined [inflation] this way. In fact, from 1864-2003, that’s exactly how Webster’s defined inflation: “undue expansion or increase, from over-issue; — said of currency.”

That this definition is less common today is a direct consequence of what can only be considered many years’ worth of Orwellian language restructuring [by the neo-Keynesians and monetarists*]. As I previously explained, “Inflation was and is definitionally printing money, or more specifically inflating the money supply. By divorcing the word from its literal origins, [central planning apologists] cloud the direct effect between money printing and the value of money.”

This is not unlike suddenly using the word dog to instead refer to dog piss

*in case my point wasn’t already clear, this refers to most modern-day Keynesians and monetarists

Notes:

  1. sindromedistendhal reblogged this from interruptions
  2. laliberty reblogged this from letterstomycountry and added:
    *in case my point wasn’t already clear, this refers to most modern-day Keynesians and monetarists

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