tag:blogger.com,1999:blog-19024438.post2414281105327285300..comments2023-10-23T21:13:07.775+06:00Comments on Deane's Dimension: Inflation for DummiesDeanehttp://www.blogger.com/profile/11858835286985736348noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-19024438.post-63854070846837471122008-03-31T09:42:00.001+06:002008-03-31T09:42:00.001+06:00And will respond to your JR thing machang. :)And will respond to your JR thing machang. :)Deanehttps://www.blogger.com/profile/11858835286985736348noreply@blogger.comtag:blogger.com,1999:blog-19024438.post-68669806186282784572008-03-31T09:42:00.000+06:002008-03-31T09:42:00.000+06:00Java I'm not the best person to ask that mayte. Pe...Java I'm not the best person to ask that mayte. Personally, I wouldn't.<BR/><BR/>Btw, Thanks to everyone.<BR/><BR/>and Andy:<BR/><BR/>Well I think the problem is measuring inflation with the CPI in the first place. Here's a <A HREF="http://www.mises.org/freemarket_detail.aspx?control=368" REL="nofollow"> good link </A> on the subject.<BR/><BR/>But even when the CPI is taken as a measure of inflation, the point is Oil is still not the main 'cause' of the increase.<BR/><BR/>Just as I was writing this IMF put out <A HREF="http://www.lbo.lk/fullstory.php?newsID=259092983&no_view=1&SEARCH_TERM=2" REL="nofollow">this report</A> which said much the same.Deanehttps://www.blogger.com/profile/11858835286985736348noreply@blogger.comtag:blogger.com,1999:blog-19024438.post-26289604619431616312008-03-31T09:13:00.000+06:002008-03-31T09:13:00.000+06:00Nicely Done. But one thing, If Oil causes the CPI ...Nicely Done. But one thing, If Oil causes the CPI to record a higher figure, shouldn't it basically mean that it causes inflation?<BR/><BR/>One more, I see you haven't replied to my comment on JR :P<BR/><BR/>http://deaned.blogspot.com/2008/03/how-jr-ruined-everything.html<BR/><BR/>Maybe he is not so good matchang?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19024438.post-75778359167703293792008-03-30T11:50:00.000+06:002008-03-30T11:50:00.000+06:00ddm, right. Should have emphasized that more, will...ddm, right. Should have emphasized that more, will add a para (I vaugley tried). <BR/><BR/>I don't think LBO does the same mistake, when they say "print money" they do mean monetary expansion,like you say, not literally printing notes.Deanehttps://www.blogger.com/profile/11858835286985736348noreply@blogger.comtag:blogger.com,1999:blog-19024438.post-6444376168975471792008-03-30T10:49:00.000+06:002008-03-30T10:49:00.000+06:00Money printing is not just printing new notes - ca...Money printing is not just printing new notes - cabraal will, as he often does, challenge you to show him a note with his signature on it. Even the Rs. 2k note has the signature of Mr. Sunil Mendis (i think). Anyway money printing, as you call it, is more accurately stated as expansionary monetary policy - that is Central Bank credit to the private sector and the govt. When there's more credit in the market, consumption and investment increase at a faster pace than supply - so naturally prices increase. You don't need to print a single note to have this effect. <BR/><BR/>LBO keeps harping about money printing in LK and more recently in the states - the latter refers to the cuts in interest rates to increase liquidity in credit markets that have tightened up in the recent past - not to the actual process of printing money. I personally feel that LBO in particular undermine their credibility by using such simplistic arguments.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19024438.post-47226988779393768742008-03-30T10:23:00.000+06:002008-03-30T10:23:00.000+06:00Deane: Thanks a lot for the post; explains a lot f...Deane: Thanks a lot for the post; explains a lot for people who dont have an econ background (like me :))<BR/><BR/>JJ: From what I know, the Govt Bonds at SL offer a worse rate than the FDs, even at the secondary market. Only thing is you can be sure that the govt will pay back the amount they borrowed. But I really don think this is a decision making factor (but for all you know, there WERE banks like Pramukha).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19024438.post-17016985589778736082008-03-30T06:19:00.000+06:002008-03-30T06:19:00.000+06:00Someone told me that investing in Central Bank bon...Someone told me that investing in Central Bank bonds is a good idea. What do you think?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19024438.post-24458668954229973852008-03-30T01:38:00.000+06:002008-03-30T01:38:00.000+06:00Nice. Truth should be exposed to the ordinary manNice. Truth should be exposed to the ordinary manAnonymousnoreply@blogger.com