tag:blogger.com,1999:blog-3401584991689197404.post4311645044840892467..comments2024-03-02T09:41:35.809-08:00Comments on Donkeylicious - A Blog by Neil Sinhababu and Nicholas Beaudrot: Support A Robot For Fed Chair!Neil Sinhababuhttp://www.blogger.com/profile/03249327186653397250noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3401584991689197404.post-73810002352646245142011-12-06T16:49:09.377-08:002011-12-06T16:49:09.377-08:00I agree with all of that, except that I think this...I agree with all of that, except that I think this talk of a "marijuana pipe" is kind of silly. There are puns to be made, people! Talk about how Bernanke should be buying U.S. Bongs, or making purchases in the bong market!<br /><br />BTW, do I know you? I'm asking just because you have a Wheel of Time name and many of my friends are into fantasy novels.Neil Sinhababuhttps://www.blogger.com/profile/03249327186653397250noreply@blogger.comtag:blogger.com,1999:blog-3401584991689197404.post-5047032034473095012011-12-06T15:35:54.144-08:002011-12-06T15:35:54.144-08:00That would be very good for escaping the liquidity...That would be very good for escaping the liquidity trap, because as Paul Krugman and John Hempton have discussed, the key is to be credibly 'irresponsible'. That is, the central banker needs to keep printing after we get out of the liquidity trap, even if we experience significant (i.e., well above 2%) inflation. For years. The risk of having one's cash that's either literally or figuratively stuffed under the mattress experience massive devaluation is seriously a great method for increasing aggregate demand.<br /><br />You should read particularly John Hempton's take on the issue - it's time to buy Bernanke a marijuana pipe and a Hawaii shirt:<br /><br />http://brontecapital.blogspot.com/2011/11/buy-ben-bernanke-marijuana-pipe-and.html<br /><br />Using a robot is also good, since everyone knows that machines do crazy stuff that no human would try, if their programming calls for it (like print a one-dollar bill 10 trillion times). :-)draghkharnoreply@blogger.com