tag:blogger.com,1999:blog-7475395270631949054.post663103954993241129..comments2024-02-15T21:31:06.486-08:00Comments on Capitalism and Freedom: The Money ProblemChristopher T. Mahoneyhttp://www.blogger.com/profile/07096275297545797428noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7475395270631949054.post-89960596647488734542013-06-11T16:05:01.323-07:002013-06-11T16:05:01.323-07:00I don't know what the price elasticity of gold...I don't know what the price elasticity of gold is, but there is a lot of gold out there. I think that the Fed can create inflation without an excessive impact on the real price of gold. The Fed can smash any attempt at a corner with occasional sales.Christopher T. Mahoneyhttps://www.blogger.com/profile/07096275297545797428noreply@blogger.comtag:blogger.com,1999:blog-7475395270631949054.post-87886385535513701962013-06-11T14:17:39.973-07:002013-06-11T14:17:39.973-07:00I can see massive Fed gold buying inflating the go...I can see massive Fed gold buying inflating the gold price, but everything else? Gold rose 6-fold from 2001 to 2011 and everything else didn't do that. comet52https://www.blogger.com/profile/09260734558049028336noreply@blogger.comtag:blogger.com,1999:blog-7475395270631949054.post-5904860273639802322013-06-10T19:36:16.530-07:002013-06-10T19:36:16.530-07:00Employment growth is a function of real growth, wh...Employment growth is a function of real growth, which is a function of nominal growth. We will never get to 4% real growth with 3.5% nominal growth. The best way to get to, say, 6% nominal growth is to either target nominal growth or a derivative, such as employment, which the Fed has done. The optimal policy instrument for creating nominal growth is something that creates inflation, which bond-buying clearly isn't doing. It could be anything at all, such as apartment buildings, but gold is a conventional policy instrument that is guaranteed to create inflation. I see no better alternative.Christopher T. Mahoneyhttps://www.blogger.com/profile/07096275297545797428noreply@blogger.comtag:blogger.com,1999:blog-7475395270631949054.post-38406357672030428252013-06-10T19:26:11.939-07:002013-06-10T19:26:11.939-07:00How would the Fed buying gold improve the employme...How would the Fed buying gold improve the employment picture, exactly?comet52https://www.blogger.com/profile/09260734558049028336noreply@blogger.com