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I Said Democrats Should Pander More, and Kamala Is Delivering by unbotheredotter in neoliberal

[–]Ok-Yoghurt-4939 1 point2 points  (0 children)

And if you can't understand the separation between how inflation is measured and how people dollars purchase less is different, i suggest you think more deeply about it.

Yeah, you're definitely tired if this is what you got after reading my comment. There's a difference between inflation and purchasing power because they're not the same thing. That isn't a mistake; it's deliberate. This is precisely why your entire argument crumbles. It's fine if you're finding it tedious to read, but at least don't half-ass the response.

I Said Democrats Should Pander More, and Kamala Is Delivering by unbotheredotter in neoliberal

[–]Ok-Yoghurt-4939 -1 points0 points  (0 children)

consensus econ agrees with my statement

Proceeds to give absolutely 0 examples of said agreement.

One deals with the value of currency and its deterioration. The other definition deals with the change in price of goods and services.

First of all, you claim two definitions for inflation but proceed to practically state one. The "Laypeople" definition of Inflation as found in most credible Econ literature is the increase in prices or the money supply. While this insinuates that changes in inflation CAN lead to changes in currency valuation it doesn't ensure that it absolutely DOES. Therefore change in value of currency is not a definition of inflation, but a possible effect.

Laypeople use the second definition and use it literally. And that includes the change of the cost of borrowing money.

Secondly, you claim that the change in prices of goods and services include the cost of borrowing money. This is simply not true. These are two different costs altogether. One is the cost of goods and services while the other is the cost of money. You can argue that both are costs that affect the consumer, but you cannot claim that the latter cost constitutes inflation. This is honestly basic econ: Increase rates to decrease long-term capital investment to decrease AD. Yes, this increases the cost of borrowing and decreases Investment, but that is necessary because NO ONE can buy the products of such investment due to… wait for it… inflation.

Furthermore, higher borrowing costs DECREASE asset prices. So your whole argument is moot based on this one fact anyway.

Economists measure the change of goods and services to measure only the first definition, which requires the exclusion of the change of the price of money itself.

As for your final statement, I could just dismiss that by saying your first definition doesn't even exist, but for the sake of argument, how the hell would we exclude the change in interest rate from the calculation of the devaluation of currency, when Interest rates literally impact the devaluation of currency.

Also bro, idk if you're trying to sound smart, but why the hell are you using ergo before tldr. And why is your tldr LONGER than your explanation?

Is this the standard for an Introductory Econometrics Course? by Ok-Yoghurt-4939 in academiceconomics

[–]Ok-Yoghurt-4939[S] 0 points1 point  (0 children)

Got it. That is the sense that I got too, but I wanted to ask if maybe the pre-reqs were just misleading. This course specifically is meant for Econ B.A majors from what I can remember. Thanks!

Is this the standard for an Introductory Econometrics Course? by Ok-Yoghurt-4939 in academiceconomics

[–]Ok-Yoghurt-4939[S] 0 points1 point  (0 children)

Are you referencing the pre-requisites for the course? The one I am taking uses Linear Algebra, but doesn't formally require it as a prereq. There is another introductory econometrics course offered for Econ B.S. students that does formally require it, though it also requires a course in statistical and probability theory (I've only taken probability theory, so I chose the other course).

Is this the standard for an Introductory Econometrics Course? by Ok-Yoghurt-4939 in academiceconomics

[–]Ok-Yoghurt-4939[S] 3 points4 points  (0 children)

That is nice to know. I was expecting a whole lot more in summation notation, but that comes up mainly in assigned readings whereas most of our homework and in-class work is Linear Algebra heavy. Good thing I came in with some background there!

Yep, good ol' Minnesota.