Humble economics blogger attacked by big-shot Ph.D.
Yours truly was called out in a post at Econbrowser, one of the web's top economics sites.
My response from the comments:
You be the judge who got the better of the argument.
Definition of DEBASE
1: to lower in status, esteem, quality, or character
2a : to reduce the intrinsic value of (a coin) by increasing the base-metal content
b: to reduce the exchange value of (a monetary unit)
Now if one weren't a group-thinking modern macroeconomist, one might be able to imagine a time in Roman, French, British, or other history when the precious metal content of coins was reduced (i.e. "debased") but the prevailing economic conditions at the time were such that rapid consumer price inflation did not immediately occur. If one really wanted to exercise the old gray matter, one might imagine an equivalent thing happening today, with dollars increasing in quantity and decreasing in quality, with no significant concurrent price index increase.
I know it's very hard for modern economists to think outside of the rigid theoretical frameworks handed to them by their professors, but give it a try some time. You might learn something.
Secondly, despite your best efforts to find predictions of immediate hyperinflation on my blog, you found no such thing. What you found was a link to other discussion that our borrowing/spending ratio is in the danger range that Professor Peter Bernholz found is commonly a tipping point for economies. I maintain to this day that our serial 10% GDP deficits are extremely dangerous, but I do not predict near-term hyperinflation.
If you're going to wrongly attribute claims of immediate hyperinflation to me, would you at least do me the honor of giving me credit for the repeated calls to buy gold over the last six years? Those calls have been very successful long prior to gold's headlines in the popular media and despite there being no "inflation" by your definition.
Finally, no, I wasn't defending Rick Perry. He's a moron.
It's tragic that academia is no longer about the inquisitive pursuit of knowledge but the incurious, narrow-minded defense of doctrine. I pity the current crop of university students.
Long-time W.C. Varones readers will recall Menzie Chinn as the guy who lost a battle of wits against Sarah Palin.