tag:blogger.com,1999:blog-6173938205311541890.post3626833934430367349..comments2023-06-13T08:34:06.278-03:00Comments on Econo-Mía [y Tuya]: Some Fallacies of some "Heterodox" Economists: Post-KeynesiansGuillermo Sánchezhttp://www.blogger.com/profile/01174951675530372120noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6173938205311541890.post-39831945142270425172018-07-05T08:30:30.046-03:002018-07-05T08:30:30.046-03:00PatheticPatheticAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6173938205311541890.post-15028979036627433872018-04-06T08:24:21.666-03:002018-04-06T08:24:21.666-03:00Este comentario ha sido eliminado por un administrador del blog.Anonymoushttps://www.blogger.com/profile/09057490384349443293noreply@blogger.comtag:blogger.com,1999:blog-6173938205311541890.post-37309976244450392722017-08-23T03:18:12.175-03:002017-08-23T03:18:12.175-03:00Podrías refutar este post? http://socialdemocracy2...Podrías refutar este post? http://socialdemocracy21stcentury.blogspot.com.ar/p/there-is-mountain-of-empirical-evidence.html<br />Se menciona más evidencia que la de Means y casi no hay estudios que contradigan los de mark up prices :/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6173938205311541890.post-30314004739400297352014-02-07T10:51:46.235-03:002014-02-07T10:51:46.235-03:00“That means that debt gets bigger in real terms as...“That means that debt gets bigger in real terms as people's incomes and asset prices fall.”<br /><br />Right. And, as I said, that situation can be managed with a) renegotiation: lowering the nominal value of debt (nominal debt falls as all prices fall) or b) bankruptcy: non-indebted people take over firms. In option a) you can still pay debt as you were doing before deflation and in b) your debt is cancelled with an asset owned by a guy who was not over-indebted at the moment of deflation. In no case there is some kind of “debt slavery”.<br /><br />“debt slavery is effectivly created this way”<br /><br />Actually, “debt slavery” is created this way:<br /><br />"At the beginning of the twentieth century, most firms and industrial corporations were financed out of their revenues, and banks and other financial intermediaries played only a subordinate role. Today, the picture has been reversed, and the most fundamental reason for this reversal is paper money. Paper money has caused an unprecedented increase of debt on all levels: government, corporate, and individual. It has financed the growth of the state on all levels, federal, state, and local. It thus has become the technical foundation for the totalitarian menace of our days." (Hülsmann, 2008a: 21)<br /><br />A deflationary spiral wipes out debt. There is no more debt left after the whole process, only equity. Nobody trust each other, nobody give credit anymore. <br /><br />It is not “aggregate demand” what remains unchanged, but the level of activity. It is not true that economic activity *must* decline with deflation. However there has been a change in composition of owners.<br /><br />Actually those who don’t want deflation are the big multi millionaire debtors. The big “captains of industry”, big corporations, governments, etc. And as long as deflation increases interest rates, the value of assets falls. It is *inflation* what works in favor of government and its closest business crony allies, they enrich themselves at expense of all citizens. Guillermo Sánchezhttps://www.blogger.com/profile/01174951675530372120noreply@blogger.comtag:blogger.com,1999:blog-6173938205311541890.post-10963609788020057402014-02-06T13:37:51.349-03:002014-02-06T13:37:51.349-03:00" It is true that massive bankruptcies that c..." It is true that massive bankruptcies that can result from over-indebted people in the context of falling prices are deplorable from the point of view of individual entrepreneur, owner and capitalist that suffers it and that individual firms will be out of business. However it is wrong to extend that conclusion to all firms or that a great number of firms will be abandoned without producing, thus bringing a fall in production. From the aggregate (social) point of view, it is not important who control the existing firms and resources, because they are intact and they do not disappear (Hülsmann, 2008b: 67-68; Bagus, 2006). "<br /><br /><br />Agregate demand disappears. You see as businesses are sold and people sell their houses at distressed prices the debt is nominal and stays that way. That means that debt gets bigger in real terms as people's incomes and asset prices fall. The winners are owners of financial assets, money government bonds etc. debt slavery is effectivly created this way. You can say that aggregate demand doesn't fall because purchasing power is only transfered from debtors to creditors, in reality this is not true in debt deflation economy. This post is a lot of wishful thinking. Kristjanhttps://www.blogger.com/profile/09592440548093816331noreply@blogger.comtag:blogger.com,1999:blog-6173938205311541890.post-25025776531172856172014-01-08T18:29:55.236-03:002014-01-08T18:29:55.236-03:00On administered prices:
I think a way to clarify i...On administered prices:<br />I think a way to clarify it is to say that Austrians talk about prices("Historical relations of exchange") and P-K's talk about prices ("proposed relations of exchange"). i.e. if you go to a supermaket you may see a 2€ etiquette. That's a proposed price. When you end up paying it you get the price. This is set as per usual price theory. The offered price is set in any way the entrepreneur wants it. However, not any offered price she wants will end up becoming a true price.Artirhttp://artir.wordpress.comnoreply@blogger.com