tag:blogger.com,1999:blog-4159906646513306121.post2465735297434016808..comments2023-11-19T20:38:50.237-08:00Comments on Economic Logic: Housing market boom-bust cycles and monetary policyEconomic Logicianhttp://www.blogger.com/profile/10171296292101248614noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-4159906646513306121.post-76551765531898112322009-12-24T01:45:50.418-08:002009-12-24T01:45:50.418-08:00On the same issue, see this interesting working pa...On the same issue, see this interesting working paper:<br />The housing price boom of the late ’90s: did inflation targeting matter?<br /><br />http://www.banque-france.fr/gb/publications/telechar/ner/DT255.pdfAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-58914888786476220162009-07-18T11:30:53.911-07:002009-07-18T11:30:53.911-07:00Money does not need to be created to grow the econ...Money does not need to be created to grow the economy. If fact inflation has eaten away a lot of the value of our money. Somewhere around 90% since the creation of the Federal Reserve in 1913. The moderate (1-5%) inflation we generally experience over time is precisely the Fed creating additional money - inflating the money supply.<br /><br />-fishsticks <br /><br />The (official?) policy of the Fed is to maintain sustained moderate inflation. You can read more about money here (http://www.amazon.com/Monetary-History-United-States-1867-1960/dp/0691003548) or read Rothbard on inflation here http://mises.org/money/3s2.asp<br /><br />Like many things once you scratch the surface it gets complex.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4159906646513306121.post-56628566823704248632009-07-03T08:50:01.752-07:002009-07-03T08:50:01.752-07:00Since money isn't created by the government in...Since money isn't created by the government in America in order to create additional money needed by the economy people must borrow more and more money. <a href="http://nationaleconomy.net" rel="nofollow">This</a> is a good site to explain this. Basically increasingly large loans for homes is an important way in which money is created. If money creation was decoupled from loans We'd be much less likely to have housing bubbles in the future.De Reynahttp://nationaleconomy.netnoreply@blogger.com