Repo Rate Changes

saturnz said:
you keep throwing this Keynesian word around as if it means anything
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You don't care who the father behind your chosen religion is?

saturnz said:
demand (not aggregate demand) is a micro economic concept, especially in the context you use the word (bread)
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You're the one fixating on "demand" as if it is some holy grail, the thread started of very much in the space of the value, cost and spread of money itself (repo rate, inflation etc), those are macroeconomic concepts. Not that the distinction matters, Keynes predates the modern notion of this "split" anyway.

saturnz said:
I ask anyone who studied micro economics if Keynes' name is ever mentioned
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Well, you did say anyone, I have (in my own time) and yes it is. Any economics class that spends even 10 minutes on economic history mentions Keynes.
 
NarrowBandFtw said:
You don't care who the father behind your chosen religion is?
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my chosen religion?

you telling me demand and supply theory did not exist before Keynes?

LOL, and I didn't say economics, I said micro economics.
 
saturnz said:
LOL, and I didn't say economics, I said micro economics.
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Yes, YOU and only you said microeconomics, and you also clearly proceeded to read right past the bit where I told you this thread is more on the macro side so your chosen focus on micro is nonsense.

You're apparently deliberately ignoring the fact that the field of economics is much older than the existence of a micro vs macro distinction in academia, hence, in any economics course, be it micro or macro or ANY level, they typically cover some economics history and Keynes is guaranteed to feature in that history.
 
NarrowBandFtw said:
Yes, YOU and only you said microeconomics, and you also clearly proceeded to read right past the bit where I told you this thread is more on the macro side so your chosen focus on micro is nonsense.

You're apparently deliberately ignoring the fact that the field of economics is much older than the existence of a micro vs macro distinction in academia, hence, in any economics course, be it micro or macro or ANY level, they typically cover some economics history and Keynes is guaranteed to feature in that history.
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so if this is a macro thread, why bring bread into the equation?
 
saturnz said:
so if this is a macro thread, why bring bread into the equation?
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Why bother getting stuck on micro vs macro at all?

The bread example simply serves a purpose, its category is of no significance. From a praxeological study perspective it is a handy example to demonstrate likely human actions when faced with a recurring problem: hunger.

Would you prefer: there are many goods and services that we can collectively call necessities that cannot just be bought when the price is favourable, but always must be bought? Much more effective to use a real world example I'd say.

Again, it being micro or macro has no significance whatsoever, the likely human action which overrides the perfect mathematical model some academic conjured from thin air and never proved is the point.
 
saturnz said:
I'm not preaching anything, as for micro and macro economics comment, that's crazy funny, you clearly making things up as you go along

and you have failed to provide any empirical evidence to support your views, infact you do not even know what empirical evidence is even though google is a click away
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Be clear on what you actually disagree with and then I'll get you the empirical evidence for that.

Just calling me crazy doesn't really help. Would you accept a psych report as empirical evidence that I'm not crazy?
 
rietrot said:
Be clear on what you actually disagree with and then I'll get you the empirical evidence for that.

Just calling me crazy doesn't really help. Would you accept a psych report as empirical evidence that I'm not crazy?
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okay you clearly have a very short memory span

rietrot said:
If you don't allow price deflation, you are guaranteed long stagnant periods and big crashes were prices correct themselves.
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saturnz said:
and do you have any empirical evidence to show how deflation will prevent long stagnant periods
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NarrowBandFtw said:
Why bother getting stuck on micro vs macro at all?

The bread example simply serves a purpose, its category is of no significance. From a praxeological study perspective it is a handy example to demonstrate likely human actions when faced with a recurring problem: hunger.

Would you prefer: there are many goods and services that we can collectively call necessities that cannot just be bought when the price is favourable, but always must be bought? Much more effective to use a real world example I'd say.

Again, it being micro or macro has no significance whatsoever, the likely human action which overrides the perfect mathematical model some academic conjured from thin air and never proved is the point.
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yeah, well that's just like your opinion, man
 
rietrot said:
Be clear on what you actually disagree with and then I'll get you the empirical evidence for that.

Just calling me crazy doesn't really help. Would you accept a psych report as empirical evidence that I'm not crazy?
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You're wasting your breath. No one ever even takes this guy seriously you will see no one responds to him, I think everyone has him on ignore. Maybe you should too :D
 
Pitbull said:
You're wasting your breath. No one ever even takes this guy seriously you will see no one responds to him, I think everyone has him on ignore. Maybe you should too :D
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yeah everyone takes you real seriously LOL
 
NarrowBandFtw said:
Why bother getting stuck on micro vs macro at all?

The bread example simply serves a purpose, its category is of no significance. From a praxeological study perspective it is a handy example to demonstrate likely human actions when faced with a recurring problem: hunger.

Would you prefer: there are many goods and services that we can collectively call necessities that cannot just be bought when the price is favourable, but always must be bought? Much more effective to use a real world example I'd say.

Again, it being micro or macro has no significance whatsoever, the likely human action which overrides the perfect mathematical model some academic conjured from thin air and never proved is the point.
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A scholar of the Austrian School of Economics Theory?
 
saturnz said:
okay you clearly have a very short memory span
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I thought we already covered that.

http://www.japantimes.co.jp/opinion...y/japan-commentary/the-truth-about-deflation/

This explains the stagnation part.

For the big crashes google any of the asset bubbles form in the past.
Then hyperinflation for why it is a stupid idea to cheapen money in difficult times.
For bonus points you could look at the over indebtedness we currently have.

The only way you could counter this form a keynes point of view is to argue we can outgrow it. Then I would like to remind you that inflation decrease spending power and our economy or the world economy is not keeping up. You need to simulate the economy a lot more with cheap money.
 
rietrot said:
I thought we already covered that.

http://www.japantimes.co.jp/opinion...y/japan-commentary/the-truth-about-deflation/

This explains the stagnation part.

For the big crashes google any of the asset bubbles form in the past.
Then hyperinflation for why it is a stupid idea to cheapen money in difficult times.
For bonus points you could look at the over indebtedness we currently have.

The only way you could counter this form a keynes point of view is to argue we can outgrow it. Then I would like to remind you that inflation decrease spending power and our economy or the world economy is not keeping up. You need to simulate the economy a lot more with cheap money.
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where is your empirical evidence?

we haven't covered that bit
 
saturnz said:
But you said Japan did not experience deflation so how can you use my evidence to support your assertion
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https://en.m.wikipedia.org/wiki/Lost_Decade_(Japan)

Read some more on the causes section in the wiki.
The government and central bank bailed out most "to big to fail" banks.
Deflation and bubbles bursting plays a important part in railing in reckless lending and bad greed.

Japan didn't want to face the short term pain so they stretched it out through 2 decades. That is what the rest of the world including us are doing now as well.
 
rietrot said:


Read some more on the causes section in the wiki.
The government and central bank bailed out most "to big to fail" banks.
Deflation and bubbles bursting plays a important part in railing in reckless lending and bad greed.

Japan didn't want to face the short term pain so they stretched it out through 2 decades. That is what the rest of the world including us are doing now as well.
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you still have no idea what empirical evidence is then
 
NarrowBandFtw said:
Not formally, but yes I've dabbled in various economics theories and have largely settled on Austrian to be the only one that is rooted in reality.

I hinted at it quite clearly by mentioning Hayek and Mises earlier: https://mybroadband.co.za/vb/showthread.php/900960-Repo-Rate-Changes?p=20087864&viewfull=1#post20087864
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Apart from a semester of Micro and a semester of macroeconomics (never went to a single lecture as it clashed with 2nd year engineering Math), all done to "broaden" our engineering training I have no idea on Economic theory, so tend to just stand back and watch.

Some of what you said did ring a bell on the Austrian theory, so just confirming.
 
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