Peter Klein |
Hate to keep flogging a dead horse, and perhaps preaching to the choir, but the point can’t be made often enough: relative prices matter. The childish Keynesianism of people like DeLong and Krugman, like Bernanke and Geithner, understands only aggregate concepts like “national output,” “employment,” and “the price level.” A consistent theme of this blog’s rants is that resources are heterogeneous (1, 2) and, consequently, relative prices must be free to adjust to changes in demand, technology, market conditions, and so on. When government policy generates an artificial boom in a particular market, such as housing — drawing resources away from other parts of the economy — the key to recovery is to let resources flow out of that market and back to the sectors of the economy where those resources belong (i.e., to match the pattern of consumer demands). It’s quite simple: home prices should be falling, interest rates should be rising, savings rates should be going up, and debt levels should be going down. The Administration’s policies, like that of the last Administration, are designed to achieve exactly the opposite. Why? Because relative prices don’t matter, the allocation of resources across activities doesn’t matter, all that matters is to keep any sector from shrinking, any prices from falling, any firms from failing, any consumers from reducing their consumption. A child thinks only about what he can see. The unseen doesn’t exist.
Here are some excellent posts on the subject. Craig Pirrong notes that Sherwin Rosen had a colorful way of emphasizing relative price effects. Mario Rizzo (1, 2) points to data on the housing market and the Fed’s continuing attempt to keep resources from flowing out of this bloated sector. And here’s a snippet from Israel Kirzner’s short book on Mises explaining that insolvent financial institutions should be liquidated, not rescued. Good reading for grown-ups.

buscando piso......
http://estabilizacionescaos.blogspot.com/2009/04/buscando-piso-son-los-precios-ralativos.html

es tan aburrido q se cae solo Mauro

y si... para un analfabeto (reconocido por el mismo, no te crea que saber de historia o como garcar al fisco te salva de algo...) y para un rubio gordo resentido, todo que no sea mediocridad es aburrido. Que le vamos hacer.... es el drama de los fracasados, por no decir, hijos de una mal cogida

salu

Rubio gordo?? ése vendría a ser yo o Khyron??
Venga Mauro seguí popsteando canciones melancólicas en el Facebook

jaja por qué borraste esos comentarios??
Posteaste esos temas porque te dejó tu novia virtual no?? jaja, andà a algunas reuniones liberales, mirà q Coup consiguiò asì a Berti XD

PD: no soy rubio, el vino de tetra te nubla la vista....pasa q con sol el castaño parece màs claro, y estoy mil veces mejor q vos en estado físico, así q a callar!!

jaja es eso no mauro?? problemas del corazón??
Hasta me borraste un coemntario forro
Si hubieras seguido las técnicas de la UOCRA enseñadas por Khyron, hoy no estarias tan tirado....

El q parece inflado en la foto sos vos maurito, què ejercicio practican los Emos ademàs d clavasrse unas pajilas??

Problemas de amor o compramos otra vez las acciones equivocadas??

Bueno Mauro no te quejes, ya tienes el thread arriba.

Me borró 2 coemntarios q hablaban sobre problemas amorosos....así q por ahí viene el tema

estrógenos??

http://www.americanlifestyle.com/products/Ripped-Fuel-Ripped-Power.jpg.jpg