Saturday, September 4, 2010

Who you calling John Law?

Alternative titles considered for this blog post:

1. Austrians say the darndest things, and
2. Silly Austrians, BPS are for Keynes!

Anyway - Jonathan Catalan seems to think the move from LM2 to LM3 in Figure 1 and from LM1 to LM2 in Figure 2 are the same thing. I'm not sure why he would think such a thing. I mean just look at them! They look really, really different, right? What's the deal Jonathan?


  1. Can you tell us why you think they are different?

  2. Um, from those graphs there's no reason to think they're different. In any case, I'm really not sure what you're getting at (too much money is obviously bad, but a little increase in the supply of money is good?).

  3. Two commenters don't think those are different?


    Am I drinking crazy juice here? I thought this would be a blatantly obvious zinger.

  4. ...which is why I took the liberty of prefacing it with all that goofy stuff


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