[ExI] Inflation graph

[John Clark]

On Fri, Nov 29, 2013 at 8:50 AM, Mirco Romanato <painlord2k at libero.it>wrote:

>> 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.
>>
>
> > Monetary inflation have a single cause (the increase of the units of
> money).
>

A single cause? That is ridiculous, you need 2 independent variables to
describe something even as simple as the wind, speed and direction! You're
saying that the retail cost of a widget has nothing to do with the savings
rate, or the manufacturing efficiency of making a widget (productivity), or
the general desire the population has of owning a widget, you're saying the
cost of the widget only depends on how much money is around. And that's
just nuts.

> Price inflation is caused by monetary inflation,


In the last decade I've seen the largest increase in the units of money in
my lifetime, and I've also seen the lowest interest rates and the lowest
increase of the cost of goods and services in my lifetime. Therefore your
theory that monetary inflation has a single cause, the increase of the
units of money, and price inflation is caused by monetary inflation must be
wrong, or at least it must be wrong if you assume that the scientific
method is valid.

> just the ways and times this happen are not fixed and rarely easily
> foreseeable.
>

So your theory can't make good predictions. A theory that can't make good
predictions is as useless as a sack full of dead rats in a tampon factory.

  John K Clark
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