tag:blogger.com,1999:blog-5776375569387669394.post6703485969081825072..comments2023-10-19T10:43:38.825-04:00Comments on Free Advice: Arnold Kling's Bizarre Monetary TheoryBob Murphyhttp://www.blogger.com/profile/04001108408649311528noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5776375569387669394.post-69972938154408544222009-09-30T10:18:56.837-04:002009-09-30T10:18:56.837-04:00Your comparison of Sumner's ideas to Zimbabwe ...Your comparison of Sumner's ideas to Zimbabwe is one-sided in the extreme. The NGDP futures targeting scheme he has supported (or, alternatively, a market based inflation-targeting regime, which he would argue is slightly inferior but still better than what we have) is <i>inherently</i> self limiting on the upside. It basically supplants some of the policy making apparatus (the FOMC) with a market-based mechanism.<br /><br />Or, perhaps, you believe that the FOMC Politburo is a superior mechanism to a futures market?StatsGuynoreply@blogger.comtag:blogger.com,1999:blog-5776375569387669394.post-1312446480291115812009-09-30T09:00:10.881-04:002009-09-30T09:00:10.881-04:00Bob, Like Hollywood wannabees, I consider any pub...Bob, Like Hollywood wannabees, I consider any publicity to be good publicity. There's a much quicker way to get instant inflation. Cut the value of the dollar in half in foreign exchange markets by offering to buy unlimited yen at 50 to the dollar, and unlimited euros at .40 euros to the dollar. That'll do it.Scott Sumnerhttps://www.blogger.com/profile/15864819372390187247noreply@blogger.comtag:blogger.com,1999:blog-5776375569387669394.post-46667081989744077482009-09-29T06:58:16.092-04:002009-09-29T06:58:16.092-04:00Yeah, Kling goes overboard on that point and I don...Yeah, Kling goes overboard on that point and I don't know why. The thing that Sumner needs to be made to understand is that when a patient has a high temperature you treat the patient and not the thermometer.teqzillahttps://www.blogger.com/profile/10644136551384385125noreply@blogger.com