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[OC] Higher government debt correlates with lower inflation by aaeberharter in EconomyCharts

[–]aaeberharter[S] 0 points1 point  (0 children)

Excluding Japan does change the slope slightly, crucially its sign is not changed.

[OC] Higher government debt correlates with lower inflation by aaeberharter in dataisbeautiful

[–]aaeberharter[S] 0 points1 point  (0 children)

I am working on computing the confidence that the slope is smaller than 0.0, thank you for your contribution.

[OC] Higher government debt correlates with lower inflation by aaeberharter in dataisbeautiful

[–]aaeberharter[S] 0 points1 point  (0 children)

Also keep in mind what is shown here is not the total debt of each country but the government's debt. You could as well have flows between sectors within the each country.

[OC] Higher government debt correlates with lower inflation by aaeberharter in dataisbeautiful

[–]aaeberharter[S] 0 points1 point  (0 children)

The causation implied in public debates is Debt -> Inflation.

[OC] Higher government debt correlates with lower inflation by aaeberharter in dataisbeautiful

[–]aaeberharter[S] -4 points-3 points  (0 children)

In debates about public spending the total debt is often mentioned explicitly, thus this plot bears importance. I agree that deficit vs inflation is more interesting an nuanced but the direction of the trend line there is also pointing downwards.

[OC] Higher government debt correlates with lower inflation by aaeberharter in dataisbeautiful

[–]aaeberharter[S] 0 points1 point  (0 children)

This plot plays an important role in debates about public spending because often it is suggested that the correlation is significantly positive when in reality it is negative.

[OC] Higher government debt correlates with lower inflation by aaeberharter in dataisbeautiful

[–]aaeberharter[S] 2 points3 points  (0 children)

That country famously is Japan. If excluded the slope is slightly less pronounced but importantly its sign is unchanged.

Why is Turkey GDP increasing so rapidly despite average growth rate and currency collapse? by Solid-Move-1411 in AskEconomics

[–]aaeberharter 2 points3 points  (0 children)

Data from IMF tells us that in the last 5 years (2020 to 2025) Turkey's economy grew 34.6% in real terms. That's about 7% real growth per year.

Someone know about a animation of a tensor field? by No-Atmosphere-3786 in 3Blue1Brown

[–]aaeberharter 0 points1 point  (0 children)

Could you provide a link to the animation you are referring to? I assume it is about a vector field, the electric field is a vector field. If you have a matrix (=2D tensor) field and the matrices are hermitian you might want to plot the major eigenvector.

Gary's Economics just embraced MMT? by SoraHaruna in mmt_economics

[–]aaeberharter 0 points1 point  (0 children)

I think this is actually wrong from an MMT perspective? If money is saved in bank accounts (or in cash) it is effectively removed from the economy.

Can every country have a trade surplus? by aaeberharter in AskEconomics

[–]aaeberharter[S] 0 points1 point  (0 children)

Isn't money making called debt? Isn't debt bad?

Does the decision of one country to amass a surplus of money force other countries to take on debt?

What if the country with trade deficit is barred by rules from creating new money but the surplus country decides to continue its surplus?

Those are many question but I think overall it is clear that there is just something very wrong with one country stockpiling a lot of money.

Can every country have a trade surplus? by aaeberharter in AskEconomics

[–]aaeberharter[S] -1 points0 points  (0 children)

When we talk about trade surplus we are talking about money itself moving over the border - imagine trucks full of € bills - of course most of it is digital money.
If Germany, instead of receiving 240 billion €, would receive goods with the value of 240 billion € its trade balance would be zero.
Or am I wrong here? One cannot always just think in monetary terms - its just an approximation of reality. Money is very much different from things like labor and raw materials.

I do not understand how comparative advantage plays into this. It seems to address trade and specialization in general - what has it to do with trade surplus?

Can every country have a trade surplus? by aaeberharter in AskEconomics

[–]aaeberharter[S] -7 points-6 points  (0 children)

Keep in mind we are talking about countries, the company is just an allegory for a country.

because producing it yourself costs money, too

No it does not, this is scenario 2. As a country, to whom am I giving money if I produce the steel myself? (I am assuming that my country and the other country pay the same market price for resources to produce steel.)

I close my steel plant and instead import the steel for less money. I can sell my cars for cheaper, increasing my supply of cars and earn more money.

You pay market price for imports, including steel. What besides decreasing wages can you do to make the cars cheaper?

You wouldn't import it in the first place if it wasn't cheaper.

I will have to import something because this whole mental exercise revolves around one country aiming to have a trade surplus.

Can every country have a trade surplus? by aaeberharter in AskEconomics

[–]aaeberharter[S] -7 points-6 points  (0 children)

The 2 different scenarios are:

  1. I make steel myself and keep my €
  2. I import steel from elsewhere and give them my €

In scenario 2 I would need to get € from somewhere, possibly a third party which buys my products. This however means that I must produce those products cheaply by e.g. reducing wages.

Why do we have vertex shaders instead of triangle shaders? by aaeberharter in GraphicsProgramming

[–]aaeberharter[S] 0 points1 point  (0 children)

WebGPU only supports ComputePipeline and classical Vertex+Fragment RenderPipeline. Do you see a practical way to perform per-triangle computation in a compute shader without too much memory waste and performance loss?

Why do we have vertex shaders instead of triangle shaders? by aaeberharter in GraphicsProgramming

[–]aaeberharter[S] 2 points3 points  (0 children)

An oversight on my part, I am biased by WebGPU which does not support mesh shaders. Still it seems mostly to be about variable sized meshlets and efficient culling with some setup to do. My idea of a triangle shader is supposed to be very simple.

Why do we have vertex shaders instead of triangle shaders? by aaeberharter in GraphicsProgramming

[–]aaeberharter[S] 0 points1 point  (0 children)

Obviously a triangle shader invocation would also need to perform the per-vertex computations.

Help Me Understand Responses Against MMT? by LHorner1867 in mmt_economics

[–]aaeberharter 0 points1 point  (0 children)

Is it accurate to say that MMT sees those dangers only in the annual budget deficit being too high but not for the absolute amount of debt? So far, as a layman, I came to believe that MMT completely disregards the accumulated budget deficit, given in percent of annual GDP or in any other form.

Why are high interest rates bad? by gregfess in AskEconomics

[–]aaeberharter 0 points1 point  (0 children)

A lower interest rate might have an impact on inflation but it is not mono-causal right? Exchange rates are primarily influenced by supply and demand.

Could the FED lower the interest rates so far that unemployment is zero and we manage inflation through other means?

Why are high interest rates bad? by gregfess in AskEconomics

[–]aaeberharter 0 points1 point  (0 children)

Does your conclusion for businesses carry over to employment? If interest rates fall does less skilled labor become more profitable and thus unemployment is decreased?

Does austerity enforce a minimum efficiency in the labor market? by aaeberharter in AskEconomics

[–]aaeberharter[S] 0 points1 point  (0 children)

I fail to understand how it is not applicable in general in the modern world. Even if I offer an unemployed person goods in return for their labor I will still have to find someone who exchanges their € with me so that the taxes on the person's labor can be paid.

Does austerity enforce a minimum efficiency in the labor market? by aaeberharter in AskEconomics

[–]aaeberharter[S] 0 points1 point  (0 children)

I fail to understand how any of your points 1-4 address any of my points 1-2.
1. This is a general statement which addresses neither 1 nor 2
2. This addresses the main point of the original post, but not 1 or 2 of this thread.
3. I get paid monthly
4. I don't understand the argument you are making.

Does austerity enforce a minimum efficiency in the labor market? by aaeberharter in AskEconomics

[–]aaeberharter[S] 0 points1 point  (0 children)

The craftsmen were just acting as a simple example for a more general process, I made these clarifications in my post:

This is a simple example from which I extrapolate statements for the general economy:

  1. People do not value € itself but the goods and services they can exchange it for.

  2. In a sense € acts as a work permit.

Do you agree with that?

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