Macrobusiness has been obstinately banging on about the terrible deflationary forces bogeyman for longer than one cares to remember. They have become, it seems, the spiritual successor to the Steve Keen (and Ed Karan before him).
One doesn’t have to go far to find examples, indeed, it’s pretty hard to get out of bed without tripping over a bunch of deflationary MB ejaculations.
Still, here are some recent examples
…from June 2020:
Massive deflation is ahead. Gold will not fully roar until that is reflected in the USD which is more recovery than ongoing risk scenario.https://www.macrobusiness.com.au/2020/06/how-does-gold-reach-3000/
….and July 2020:
Yet, in another way, this speech is shockingly obtuse. How can Dr Lowe see no benefit in policy innovation (like but not exclusively MMT) that lifts inflation and interest rates? Dr Lowe faces rampant deflation and his job is to turn that into 2% plus so why would he not welcome new tools that can get him there? On the second, why wouldn’t Phil Lowe want higher interest rates for the world? That is a prerequisite to restoring capitalism by giving it back a price of capital. The great bubble manager appears to fear the very outcome he is employed to produce.https://www.macrobusiness.com.au/2020/07/put-phil-lowe-on-jobkeeper/
Of course, anyone interacting with the EZFKA, rather than engaged in some sort of self-referential fantasy construction inside an insulated deflation imaginarium, knows that this is complete bunk on many levels.
- Deflation is not a bogeyman to be afraid of
- Deflation isn’t here
- Deflation isn’t coming
Recently, MB readers have written some post cards addressed to the MB deflation imaginarium, telling of their travels, here: https://www.macrobusiness.com.au/2020/10/why-the-used-car-boom-bodes-poorly-for-economy/#comments. Here are some choice snips:
Time will tell if the MB boys read and understand the messages.
You’d think that walking around with your eyes closed tight and bumping into sharp inflation-shaped shit all the time while telling yourself it’s deflation would get pretty painful after a while. You’d also think that the consequences of lower and lowerer rates and printed dollars in the EZFKA would be pretty easy to understand, but hey…