CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Sunday, December 07, 2008
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
Previous Posts
- CD Breaks Into the Top 10 Econ/Business Blogs
- Inside The Influential New World of Econobloggers:...
- What Took 6 Yrs. in 1980s Took Only 6 Mos. in '08
- Toyota Started in 1936, Why No Legacy Costs?
- So What Are Domain Names Worth?
- More on the $70 Total Labor Cost Per Hour for GM
- Bailout Smackdown: Peter Schiff vs. Lansing Mayor
- Other Side of the Bailout: VW, Nissan, Kia, Honda
- President John F. Kennedy, Early Supply-Sider
- Middle-Class UAW? How About Upper-Class.
7 Comments:
Deflation! Mike Shedlock (globaleconomicanalysis.blogspot.com) has been predicting the coming of deflation since 2006.
The flight to liquidity has been a 30 year process?
"been predicting the coming of deflation since 2006"...
Hmmm, that's sort of like predicting sunrise in the morning, isn't it?
anon:
Speaking of predictions, I've been predicting the Arizona Cardinals will make the playoffs for about 10 years. Makes me look like a genius now.
I'm predicting the return of inflation. You heard it here first.
I fear this is only temporary. The flooding of the system w/ billions of dollars of liquidity will eventually send prices higher again. Will oil retest its highs? Certainly possible but one would hope that it will bounce along before any meaningful volatility returns. The economy may very well be so moribund that the risks are reduced but it could come back any time.
>The flooding of the system w/ billions of dollars of liquidity will eventually send prices higher again.<
Money is a creation of the local banks' lending operation. It is encouraged by interest income. You cannot create more money in the system by putting money into banks and lowering the interest rates. This Keynesian strategy is founded on a flawed understanding of the banking system. It has never worked and will never work! Why is it that noone seems to notice!
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