Repo Rate Changes

NarrowBandFtw said:
What does it matter? It is but one, of MANY, examples where the price in no way affects buyers' behaviour.


I haven't ignored it, it just isn't unique, a properly run government has to meet demands from the electorate. The electorate does not accept "it will be cheaper to do next year" as an excuse. The Western Cape needs water infrastructure solutions NOW, nobody cares about the cost. When Eskom had load shedding every day an immediate solution was needed, the price of supply doesn't enter into the equation at all, the need overrides it.

Then something even further off topic: government spending has no business representing a big portion of aggregate demand, that's a symptom of an inefficient government.
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That's not entirely correct. Desperation makes people except higher cost, but they still care and there is a upper limit linked to affordability.
 
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saturnz said:
yeah as if I can't find this funny
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You skipped the context of "examples where the" by bolding only the words after, I guess you need to misrepresent my argument to avoid the undeniable truth it exposes hey? ;)

saturnz said:
you will never be convinced by my argument
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ditto, only I never hoped to convince you, only to demonstrate the those who may not yet be that brainwashed that Keynes = fallacy

saturnz said:
so I will just laugh at your statements
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As the Hyena does while chewing its own leg.
 
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rietrot said:
That's not entirely correct. Desperation makes people expect higher cost, but they still care and there is a upper limit linked to affordability.
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Sure, affordability matters when it comes to price. But that's not the angle used in the la-la-land argument, they imply that you are delaying your purchase of something you can already afford at the higher price just because the price is about to drop.

Otherwise it doesn't count as a delay, if I can't afford the higher price I won't be buying it at all.
 
NarrowBandFtw said:
You skipped the context of "examples where the" by bolding only the words after, I guess you need to misrepresent my argument to avoid the undeniable truth it exposes hey? ;)
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price is a major component for all goods and services demanded


if you earn R10 in T, and the price of bread is R10 in T, and the price of bread goes up to R20 in T+1, you can now only consume half a loaf of bread in T+1 with your income of R10

thus demand has dropped, proving that price has an impact on demand
 
saturnz said:
price is a major component for all goods and services demanded
if you earn R10 in T, and the price of bread is R10 in T, and the price of bread goes up to R20 in T+1, you can now only consume half a loaf of bread in T+1 with your income of R10
thus demand has dropped, proving that price has an impact on demand
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Well done, you have finally touched on affordability, now tell me which phenomena has the more positive impact on affordability: inflation or deflation? :crylaugh:
 
NarrowBandFtw said:
Well done, you have finally touched on affordability, now tell me which phenomena has the more positive impact on affordability: inflation or deflation? :crylaugh:
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*sigh*, I asked this question in a different manner long ago
 
saturnz said:
price is a major component for all goods and services demanded


if you earn R10 in T, and the price of bread is R10 in T, and the price of bread goes up to R20 in T+1, you can now only consume half a loaf of bread in T+1 with your income of R10

thus demand has dropped, proving that price has an impact on demand
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Yes, price influence demand. That's affordability, that's the problem with inflation only. That's why the economy is currently struggling. The prices are too high, the obvious solution is we need deflation, prices should drop.
lowering rates only cheapens money, and that causes more inflation.
If you're in a hole and want to get out, first stop digging.
 
rietrot said:
Yes, price influence demand. That's affordability, that's the problem with inflation only. That's why the economy is currently struggling. The prices are too high, the obvious solution is we need deflation, prices should drop.
lowering rates only cheapens money, and that causes more inflation.
If you're in a hole and want to get out, first stop digging.
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just so that I have this clear, this is your opinion and not fact
 
NarrowBandFtw said:
Curious, what makes you think quoting a central bank that is just repeating the same Keynesian theory nonsense, like they all do, proves anything?
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perhaps refer us to the theory where price does not affect buyer behavior, or is that something you just thought up
 
saturnz said:
perhaps refer us to the theory where price does not affect demand, or is that something you just thought up
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Misrepresent my words some more why don't you? :crylaugh:

I said the need and affordability aspects are greater determinants of consumer behaviour than just price. You have two choices to help you understand why:

1) just use your common sense, it really is that easy
2) if you insist on someone else's theory to dictate to you instead of using your own mental faculties, study the works of Ludwig von Mises and Friedrich A. Hayek as a start
 
NarrowBandFtw said:
Misrepresent my words some more why don't you? :crylaugh:
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nope, I'm not misrepresenting anything

NarrowBandFtw said:
What does it matter? It is but one, of MANY, examples where the price in no way affects buyers' behaviour.
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as for affordability, demand curves already have this built in, that's how demand curves are constructed from first principles
 
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saturnz said:
as for affordability, demand curves already have this built in, that's how demand curves are constructed from first principles
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LMAO ... yet more Keynesian tripe, lord your cup runneth over!
Demand curves are nothing but overly simplistic models cooked up by people who already assume their unproven model to be fact, I challenge you to find me a demand curve graph constructed by anyone other than a Keynesian fool :D

Pro tip: throwing more Keynesian jargon or models at the problem does nothing for your argument once Keynes theory has already been dismissed entirely
 
NarrowBandFtw said:
LMAO ... yet more Keynesian tripe, lord your cup runneth over!
Demand curves are nothing but overly simplistic models cooked up by people who already assume their unproven model to be fact, I challenge you to find me a demand curve graph constructed by anyone other than a Keynesian fool :D

Pro tip: throwing more Keynesian jargon or models at the problem does nothing for your argument once Keynes theory has already been dismissed entirely
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you keep throwing this Keynesian word around as if it means anything

demand (not aggregate demand) is a micro economic concept, especially in the context you use the word (bread)

I ask anyone who studied micro economics if Keynes' name is ever mentioned
 
saturnz said:
you keep throwing this Keynesian word around as if it means anything

demand (not aggregate demand) is a micro economic concept, especially in the context you use the word (bread)

I ask anyone who studied micro economics if Keynes' name is ever mentioned
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Lol. Do you think you can divorce the micro and macro level? It is directly related
You get different economic theories(You actually asked for this earlier on). You are preaching Keynesian ideas even if the person who educated you failed to mention were these ideas came from or that there are alternatives.
Your opinion that aggregate-demand is special and the irrational fear of deflation is evidence of this.
 
rietrot said:
Lol. Do you think you can divorce the micro and macro level? It is directly related
You get different economic theories(You actually asked for this earlier on). You are preaching Keynesian ideas even if the person who educated you failed to mention were these ideas came from or that there are alternatives.
Your opinion that aggregate-demand is special and the irrational fear of deflation is evidence of this.
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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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