tag:blogger.com,1999:blog-6704573462403312459.post3863744565528752177..comments2024-03-29T02:53:03.321-04:00Comments on Moneyness: Best buddies: Keynes & Hayek on moneynessJP Koninghttp://www.blogger.com/profile/02559687323828006535noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6704573462403312459.post-57289877740495040292021-05-06T02:43:21.187-04:002021-05-06T02:43:21.187-04:00@Peter Surda, "people who do not spend can si...@Peter Surda, "people who do not spend can simply buy other liquid goods that do not depreciate" - I guess many people first do have to realize that. I am currently writing a Thesis on Cryptocurrencies and it looks like one of the factors to buy Crypto is that people want to put their money in a non depreciating asset(money storage) with easy access. Anonymoushttps://www.blogger.com/profile/15770619774861703284noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-56455419518270426942013-01-29T05:32:08.216-05:002013-01-29T05:32:08.216-05:00Does public spending ever increase private sector ...Does public spending ever increase private sector growth?<br /><br />If you do this, if you look at the actual data, it is surprising see: <a href="http://pol-check.blogspot.co.uk/2013/01/sydenhams-law-of-public-expenditure-and.html" rel="nofollow">Sydenhams Law of public expenditure and GDP growth</a><br /><br />Whether the public spending is for wars, economic intervention or welfare the answer is NO, furthermore the New Deal seems to have been a myth, there was a strong private sector recovery in the USA before the New Deal.Johnhttps://www.blogger.com/profile/07442010719863995872noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-33830558512583331862013-01-17T22:21:02.876-05:002013-01-17T22:21:02.876-05:00Peter, while I agree that we need to think about t...Peter, while I agree that we need to think about the unit of account, I prefer to divorce the idea of unit of account from the concept of liquidity/moneyness so that both can be considered in isolation. <br /><br />This separation comes naturally. Many units of account have no associated media of exchange. Take the SDR, for instance, or the <a href="http://www.rieti.go.jp/users/amu/en/index.html" rel="nofollow">AMU</a> (Asian Monetary Unit), the <a href="http://www.rbi.org.in/scripts/FAQView.aspx?Id=50" rel="nofollow">ACU</a>, or the WAUA (West African Unit of Account). As far as I know no actual AMU and WAUA media of exchange exist - they're purely used as accounting units. All the world's prices could be posted in terms of WAUA, but we could settle every trade using non-WAUA (dollars and such).JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-1934277060988715302013-01-17T18:22:48.281-05:002013-01-17T18:22:48.281-05:00JP,
one one hand I agree and on the other I disag...JP,<br /><br />one one hand I agree and on the other I disagree. From the point of view of liquidity it makes sense to a wide number of media of exchange. For example, Keynesians like to make the argument that a depreciating "money" motivates people to spend. Once you consider the concept of liquidity, you'll realise that this is nonsense, because people who do not spend can simply buy other liquid goods that do not depreciate.<br /><br />But there are other factors and situations where the distinction matters. Not all liquid goods are used as a unit of account, and thus do not play a role in economic calculation. The Austrian Business Cycle Theory, for example, requires that money is distinct. Peter Šurdahttps://www.blogger.com/profile/17346161576941109337noreply@blogger.com