Hyperinflation is that transition period when a paper money is clearly failing as a store of value but has not yet died as a medium of exchange. This blog is to look at this and any other interesting economic issues. Vincent Cate
Hi Vincent! Where's the link to your simulation? I was discussing with Jason possible interactive tools for blogs, and I wanted to point him to yours, but now I can't find it.http://informationtransfereconomics.blogspot.com/2015/11/dsge-form-of-it-model-active-but-not.html?showComment=1448654065910#c4772271189198690592
Here it is http://howfiatdies.blogspot.com/2013/03/simulating-hyperinflation.html?m=1
Thanks! Is there a link to it on your home page?
Hey Vincent, Jason Smith recently wrote a response to Steve Roth elucidating his views on what noney is.The statement in the title:"Money is that which is conserved via a symmetry principle"he added a modifier to in a comment to me on a subsequent post:"I probably should have said "when economics obeys the symmetry principle" because it doesn't always and therefore money can lose its value."This is an addition to a view he's expressed in an earlier post:"Money is a thing that mediates transactions and has high information entropy"What do you think? Does gold have too high an intrinsic value to have a high enough "information entropy?"
Vincent, have you ever looked into Roger Farmer's "belief function?" Here's an older post:http://rogerfarmerblog.blogspot.com/2015/07/why-belief-function-matters.htmlThis newer one touches on it:http://rogerfarmerblog.blogspot.com/2016/01/please-lets-agree-to-speak-same-language.htmlOn that second one I like the "self fulfilling prophecy" phrase. I thought you'd like this too since perhaps it could provide a path to hyperinflation (even out of a clear blue sky?).
Thanks! I commented on the second one.
BTW, that commentator John Handley you interacted with on Jason's blog (concerning hyperinflation in Japan) is somebody to keep your eye on: I didn't realize he's only 15... ... there's a lot of good stuff on his blog.
Cool. I replied to him.
Vincent, Jason is exploring the possibility of a new "information equilibrium" relationship, this time between the civilian labor force and CPI. He looks at results for both the US and Japan.http://informationtransfereconomics.blogspot.com/2016/01/is-cpi-information-theoretic-measure-of.html
Vincent, check out the news from Japan:http://www.nytimes.com/2016/01/30/business/international/japan-interest-rate.html?_r=0
Looking for polite debate on ideas. Never attack a person. Be nice.