Macro Poll: The Dollar's Up: Is This Good Or Bad?

[Redpossum]

There you go Red the first link is a specific part of the general picture the second link explains; The formula Md = P * L (R,Y); where if the k-percent rule was adhered to, one would have to influence mostly P (price level) and R (nominal interest rate) as Y is exogenous.

OK, fine, nice formula.

But my question remains the same, can you explain how that works in real world terms? What does it mean on the micro level?

Because the real world does not consist of variables and formulae, it consists of real men and women buying and selling real goods. The whole problem with economics is crap like this; people write some obscure formula on a whiteboard and proclaim that it is "a theory that really does work in the real world.", (to quote your own words back at you). But how can you say it does work in the real world if you cannot explain it in terms of the real world?

Understand, please, I'm not attacking you personally. I'm challenging an idea which you have presented, because I think you have been hoodwinked along with the rest of us. We sit in a classroom at some university, and we are fed ideas. We accept those ideas and parrot them back on demand, because that's the way to pass a class. Professors do not like being challenged, and they do not give good grades to students who annoy them. Nothing about the undergraduate system encourages critical thinking when such critical thinking is directed at the course materials. By the time we become graduate students, the foundation of our thinking is set in stone, and again nothing about the system encourages us to challenge those basic assumptions. Critical thinking is only allowed when it is externally directed.

 

[ajoknoblauch]

Which also led to the Chilean economic crisis of 1982!

The fact that the model remains today is also a consequence of the undemocratic bi-nominal voting system (institutionalized with the Pinochet constitution) that has prevented the anti-Pinochet block (that Bachelet is part of) from getting the necessary majorities in the parliament so far.

You could also add the privatized retirement system, healthcare system etc. to the list.

And look at the Argentine system - crisis-free during all that time!

We might add that Chilean healthcare includes a public option.

 

[Redpossum]

The Concertacion has had majority in congress for years. If Its so BAD why Chile rates so high in ALL indices???

Perhaps because the indices themselves are created by people who have bought into the system? Those who make the rules usually win the game.

 

[ajoknoblauch]

Perhaps because the indices themselves are created by people who have bought into the system? Those who make the rules usually win the game.

Compare them, then with the indices created by the Camporistas.

 

[Rich One]

Perhaps because the indices themselves are created by people who have bought into the system? Those who make the rules usually win the game.

Sure well you can continue to support the Indignados, and do a sit-in in Wall Street... :wub: Es lo qie hay

 

[Redpossum]

Sure well you can continue to support the Indignados, and do a sit-in in Wall Street... :wub: Es lo qie hay

No, I reject that categorically. You say "it is what it is", as though all this were some unalterable law of nature, and it's not. These indices are contrived by mortal men and women not that different from thee and me. They could easily be measured differently. And we're not talking about Wall Street, we're talking about Chile, no?

 

[Rich One]

No, I reject that categorically. You say "it is what it is", as though all this were some unalterable law of nature, and it's not. These indices are contrived by mortal men and women not that different from thee and me. They could easily be measured differently. And we're not talking about Wall Street, we're talking about Chile, no?

the indices mentioned for Chile are prepared by major international groups like CEPAL , IMF, WB, EU etc, etc. Suggest you propose the new indices and implement them.
I respect your position as a Disident a desetabilizador, destituyente.

 

[germano]

The Concertacion has had majority in congress for years. If Its so BAD why Chile rates so high in ALL indices???

Especially in the senate they did not have a majority until 2006 because of special senators that were not elected by vote - giving the pro-Pinochet block a majority in the senate. With the reform in 2005 they got rid of those senators. But still the bi-nominal voting system results in very slim majorities making major reforms difficult.

 

[Rich One]

Especially in the senate they did not have a majority until 2006 because of special senators that were not elected by vote - giving the pro-Pinochet block a majority in the senate. With the reform in 2005 they got rid of those senators. But still the bi-nominal voting system results in very slim majorities making major reforms difficult.

You are taking of old history of Senadores Vitalicios etc. The Concertacion has been en Power for more than 20 years, they could have reformed Education etc. Hope they do it Now!

 

[EdRooney]

Red, I think you're being quick on the gun to accuse Bkfentfc of being "hoodwinked". Far be it from me to defend how economics is taught, but you are accusing him of parroting back ideas, when you are not really showing an understanding of what he is saying. I agree, there needs to be a down-to-earth way to describe The Dismal Science in laymans terms, but your blanket accusations do not seem to match anything he has said.

Furthermore, you claim that Friedman had "no idea WTF he was doing," which is a grave error. There is a difference between being an idiot and being a sell-out. The problem is Friedman was an excellent economist as most other economists from all political spectra will agree, but he was a total sell-out to certain power sectors (something not at all unusual in the profession), and this affected his conclusions.

In sum, instead of using inflammatory phrases, why don't we try to find positive ways to make these issues more accessible to everyone.

PS I want to get back to Chet's great questions, but its been a busy week.