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	<title>Comments on: You&#039;ll Never Get Copper, Coppers!</title>
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	<link>http://www.kipesquire.net/2006/01/youll-never-get-copper-coppers/</link>
	<description>A Stitch in Time Saves Nine ... But Haste Makes Waste</description>
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		<title>By: Brandon Berg</title>
		<link>http://www.kipesquire.net/2006/01/youll-never-get-copper-coppers/comment-page-1/#comment-1755</link>
		<dc:creator>Brandon Berg</dc:creator>
		<pubDate>Wed, 18 Jan 2006 05:49:06 +0000</pubDate>
		<guid isPermaLink="false">http://www.kipesquire.net/?p=2004#comment-1755</guid>
		<description>Nordsieck:&lt;br /&gt;
You have it backwards. Inflation is expansion of the money supply. Generally the gold standard is associated with a downward trend in nominal prices, as the output of the economy tends to grow faster than the stock of gold. However, a dramatic increase in gold production, as might be caused by development of a cost-effective way to remove it from seawater, could lead to runaway inflation.&lt;br /&gt;
&lt;br /&gt;
Kip:&lt;br /&gt;
I&#039;m not sure you&#039;re being inconsistent, but I don&#039;t quite see where you&#039;re coming from. Is this based on the Keynesian idea that prices and wages are sticky in the downward direction, and that we need a slightly inflationary monetary policy to keep wages from falling and unions from rioting?&lt;br /&gt;
&lt;br /&gt;
Also, I&#039;ve said in the past that fiat currency is preferable to the gold standard in every way but one: that it places the money supply at the discretion of politicians. The question isn&#039;t whether the gold standard is optimal; it&#039;s whether politicians can be trusted to do better.
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		<content:encoded><![CDATA[<p>Nordsieck:<br />
<br />
You have it backwards. Inflation is expansion of the money supply. Generally the gold standard is associated with a downward trend in nominal prices, as the output of the economy tends to grow faster than the stock of gold. However, a dramatic increase in gold production, as might be caused by development of a cost-effective way to remove it from seawater, could lead to runaway inflation.</p>
<p>Kip:<br />
<br />
I'm not sure you're being inconsistent, but I don't quite see where you're coming from. Is this based on the Keynesian idea that prices and wages are sticky in the downward direction, and that we need a slightly inflationary monetary policy to keep wages from falling and unions from rioting?</p>
<p>Also, I've said in the past that fiat currency is preferable to the gold standard in every way but one: that it places the money supply at the discretion of politicians. The question isn't whether the gold standard is optimal; it's whether politicians can be trusted to do better.</p>
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		<title>By: nordsieck_</title>
		<link>http://www.kipesquire.net/2006/01/youll-never-get-copper-coppers/comment-page-1/#comment-1754</link>
		<dc:creator>nordsieck_</dc:creator>
		<pubDate>Wed, 18 Jan 2006 04:41:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.kipesquire.net/?p=2004#comment-1754</guid>
		<description>&lt;blockquote&gt;For Discussion: I have, on the other hand, essentially argued the exact opposite regarding the world supply of gold, insisting that it would be impossible to tie, as some more radical libertarians would like, the entire global economy to the extremely limited stock of gold that is available. Am I being inconsistent? Why or why not?&lt;/blockquote&gt;I don&#039;t think you are being inconsistent.&lt;br /&gt;
&lt;br /&gt;
The money supply needs to be finite, in that conterfeiting must be impossible.  That being said, in order to keep inflation down to a reasonable level, (and therefore have usable money), the supply of money has to expand at roughly the same rate as the economy.  That is impossible for anything other than a purely symbolic resource.&lt;br /&gt;
&lt;br /&gt;
Economics does not apply to the currency itself.
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		<content:encoded><![CDATA[<blockquote><p>For Discussion: I have, on the other hand, essentially argued the exact opposite regarding the world supply of gold, insisting that it would be impossible to tie, as some more radical libertarians would like, the entire global economy to the extremely limited stock of gold that is available. Am I being inconsistent? Why or why not?</p></blockquote>
<p>I don't think you are being inconsistent.</p>
<p>The money supply needs to be finite, in that conterfeiting must be impossible.  That being said, in order to keep inflation down to a reasonable level, (and therefore have usable money), the supply of money has to expand at roughly the same rate as the economy.  That is impossible for anything other than a purely symbolic resource.</p>
<p>Economics does not apply to the currency itself.</p>
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	<item>
		<title>By: Dave</title>
		<link>http://www.kipesquire.net/2006/01/youll-never-get-copper-coppers/comment-page-1/#comment-1753</link>
		<dc:creator>Dave</dc:creator>
		<pubDate>Wed, 18 Jan 2006 04:12:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.kipesquire.net/?p=2004#comment-1753</guid>
		<description>People ought to read the Skeptical Environmentalist.
</description>
		<content:encoded><![CDATA[<p>People ought to read the Skeptical Environmentalist.</p>
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