[ExI] Inflation graph

[Rafal Smigrodzki]

On Thu, Nov 28, 2013 at 10:46 PM, John Clark <johnkclark at gmail.com> wrote:
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>
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> On Thu, Nov 28, 2013 at 12:33 PM, Rafal Smigrodzki
> <rafal.smigrodzki at gmail.com> wrote:
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>> > John, you should not throw out a theory based on a thousand data points
>> > when a single new data point seemingly disagrees with it.
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>
> You are incorrect. If that single data point is well established as being
> real and it doesn't correspond with your theory then you must indeed throw
> out the theory regardless of how much you love it.

### Oh, no, I am correct. Not just seemingly.

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>
>> > Inflation is a monetary phenomenon (that's a well-accepted economic
>> > theory), i.e. it is caused by an increase in the amount of circulating
>> > currency.
>
>
> The amount of circulating currency has increased dramatically but the
> inflation rate has not, therefore the theory that it is the only variable
> responsible for inflation must be wrong. In retrospect it's not surprising
> that the theory is wrong, if inflation were caused by just one thing then
> economics would be simple, instead the economy is the product of 7 billion
> minds and is astronomically complex.

### Wow, you just smashed monetarism to smithereens. MV does not equal
PQ. Go to wikipedia and update the article on inflation so everybody
would know.

Rafal