tag:blogger.com,1999:blog-7677293091321500661.post6706940479851298214..comments2023-10-16T05:14:04.884-07:00Comments on Stochas-Tuck Modeling: Misconceptions about Austrian Business Cycle TheoryBernardo de la Pazhttp://www.blogger.com/profile/17924331118949286652noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7677293091321500661.post-69629593699095900442009-08-10T12:40:50.823-07:002009-08-10T12:40:50.823-07:00mb-
I have never suggested that sectoral misalloc...mb-<br /><br />I have never suggested that sectoral misallocations must be symmetrical. Perhaps you are confusing my position that delfationary periods also cause disequilibrium in relative prices the same as inflationary periods. I never suggested that these relative price distorions need be symmetrical with the boom. In fact, I believe it was you that suggested that the bust liquidation would just take care of itself i.e., there was no need to combat deflation because the liquidations would just be those "exact" malinvestments that wouldn't have occured in the first place.Bernardo de la Pazhttps://www.blogger.com/profile/17924331118949286652noreply@blogger.comtag:blogger.com,1999:blog-7677293091321500661.post-26321943625707583812009-08-10T12:32:37.021-07:002009-08-10T12:32:37.021-07:00Brad-
The MV=PQ framework is not exclusively Keyn...Brad-<br /><br />The MV=PQ framework is not exclusively Keynesian. See, for instance Hayek, Garrison, Selgin, White, etc.<br /><br />I agree with your second part though. Sectoral shifts back toward equilibrium can occur while fighting delfation. I hear many lay Austrians these days talk about inflationary policy and anti-delfationary policy as if they were the same thing.Bernardo de la Pazhttps://www.blogger.com/profile/17924331118949286652noreply@blogger.comtag:blogger.com,1999:blog-7677293091321500661.post-53042391856028050032009-08-10T07:24:49.553-07:002009-08-10T07:24:49.553-07:00"Austrians acknowledge that magnitudes betwee..."Austrians acknowledge that magnitudes between boom and bust need not be symmetrical..."<br /><br />And yet you have insisted (elsewhere) that sectoral misallocations in the capital structure suggested by ABCT must necessarily be symmetrical during periods of monetary inflation (booms) vs. periods of monetary deflation (busts).<br /><br />How does one tell when to assume that things must be symmetrical and when they do not have to be?Joe Coinhttps://www.blogger.com/profile/03866675494439472845noreply@blogger.comtag:blogger.com,1999:blog-7677293091321500661.post-83559129903578242782009-08-07T09:20:51.951-07:002009-08-07T09:20:51.951-07:00Nice nom de blog, BTW...Nice nom de blog, BTW...bradhttps://www.blogger.com/profile/04548019979157668776noreply@blogger.comtag:blogger.com,1999:blog-7677293091321500661.post-91192039197093487212009-08-07T09:20:25.983-07:002009-08-07T09:20:25.983-07:00Ummm...
"[W]hen people rush to hold cash an...Ummm... <br /><br />"[W]hen people rush to hold cash and less risky assets, V drops. If M is not increased to counterbalance, this deflation can lead to a decline in Q, as P will not adjust immediately. This part of the recession occurs completely independently of the sectoral shifts..." is the *Keynesian* story. <br /><br />Where Austrianism goes wrong is in its claim that you can't fight the Keynesian depression because doing so will inhibit the process of sectoral shift...bradhttps://www.blogger.com/profile/04548019979157668776noreply@blogger.com