tag:blogger.com,1999:blog-17232051.post5796788453795818240..comments2024-03-18T22:32:52.802-04:00Comments on Noahpinion: Thursday Roundup (2/23/2012)Noah Smithhttp://www.blogger.com/profile/09093917601641588575noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-17232051.post-68732418136615681582012-08-01T02:13:32.797-04:002012-08-01T02:13:32.797-04:00AWESOME operate. And also wonderful choice of tool...AWESOME operate. And also wonderful choice of tools to function... Fantastic!!Cheap Diablo 3 itemshttp://www.vipdiablo3.com/noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-38463985514623732932012-02-24T15:15:47.650-05:002012-02-24T15:15:47.650-05:00Money's role as the medium of exchange gives i...Money's role as the medium of exchange gives it certain advantages as a store of value. Any other good can be a store of value, but before you can use it, you have to convert it to the medium of exchange. This can sometimes present non-trivial difficulties. So while money is not unique in functioning as a store of value, it has a unique advantage in that role.o. natenoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-4611250188734725252012-02-24T11:24:08.556-05:002012-02-24T11:24:08.556-05:00K -
Think carefully about what I'm saying......K - <br /><br />Think carefully about what I'm saying...<br /><br />;)Noah Smithhttps://www.blogger.com/profile/09093917601641588575noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-69902699809207997662012-02-23T21:59:37.317-05:002012-02-23T21:59:37.317-05:00Noah,
If a good is depreciating it must be yieldi...Noah,<br /><br />If a good is depreciating it must be yielding some benefit. Otherwise, why would it be worth more before and less later? It's worth more because it's expected to yield some consumption. E.g. a car depreciates as it yields transportation services. So a consumption good is really a capital good with a convenience yield. Only services aren't capital goods as they are instantly consumed and depreciated. A car will yield the real rate as a store of value, only if rented out for someone else to consume the transportation services. Otherwise it's a crappy store of value, paying off returns as services one might not value. But if held by the optimal consumer it yields the real rate of return. <br /><br />KAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-83174227866171246672012-02-23T17:38:45.561-05:002012-02-23T17:38:45.561-05:00K -
I believe you are incorrect...the proper com...K - <br /><br />I believe you are incorrect...the proper comparison for holding money is holding (not consuming) consumption goods...the proper comparison for consuming (or renting out) consumption goods is spending money...Noah Smithhttps://www.blogger.com/profile/09093917601641588575noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-40056183734940599052012-02-23T17:08:07.447-05:002012-02-23T17:08:07.447-05:00Noah: "any consumption good gives you a real ...Noah: "any consumption good gives you a real return of -depreciation + change in relative price"<br /><br />Still don't agree :-)<br /><br />Depreciation results from earned convenience yield, i.e. consumed services. Those constitute real returns. So the real return is just change in relative price. As a store of value though, you'd have to rent it out to get that return. <br /><br />PS I can't read your captchas. <br /><br />KAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-38795148994401413582012-02-23T16:20:05.688-05:002012-02-23T16:20:05.688-05:00The kidney chain and the credit chain are two enti...The kidney chain and the credit chain are two entirely different problems and trying to apply insights from one to the other will not take you very far.<br /><br />The basic difference is that portfolios of debt are diversified and fungible while kidneys are not.<br /><br />The network structure of debt obligations and vulnerabilities in that network are worthwhile areas for research but the kidney exchange paradigm will not help you.Absalonhttps://www.blogger.com/profile/09131268683451462949noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-56135907659873555652012-02-23T16:18:50.901-05:002012-02-23T16:18:50.901-05:00"Never change a winning team" - just kee..."Never change a winning team" - just keep your posts as they are. It's always a pleasure to read them (especially your thursday roundup!).Ladanoreply@blogger.comtag:blogger.com,1999:blog-17232051.post-78919986205688428362012-02-23T15:47:16.776-05:002012-02-23T15:47:16.776-05:00Hey Noah...I'm guessing you don't RSS subs...Hey Noah...I'm guessing you don't RSS subscribe to either the <a href="http://pragmatarianism.blogspot.com/2012/02/banned-from-bleeding-heart-libertarians.html" rel="nofollow">Bleeding Heart Libertarian blog or the Crooked Timber Liberal blog</a>?<br /><br />Over at the Crooked Timber Liberal blog they are going pretty crazy go nuts over David Graeber's book on Debt. Figured if you subscribed to their blog you'd include at least one link to all the hoopla.Xerographicahttps://www.blogger.com/profile/14978832439622230018noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-27058733011306940152012-02-23T14:45:07.609-05:002012-02-23T14:45:07.609-05:00how do you earn a a real rate of -inflation holdin...<i>how do you earn a a real rate of -inflation holding the consumption basket?</i><br /><br />Ah, you're right, that made a typo. Fixed.<br /><br /><br /><i>And why would you hold money over tbills as an investment?</i><br /><br />A) Liquidity, and B) different behavior under a default scenario. Mostly liquidity. And yes that is "medium of exchange" not "store of value". But Nick was asking why money is special relative to consumption goods as a store of value.Noah Smithhttps://www.blogger.com/profile/09093917601641588575noreply@blogger.comtag:blogger.com,1999:blog-17232051.post-1825440675149689942012-02-23T13:47:38.239-05:002012-02-23T13:47:38.239-05:00Noah,
Ignoring for a moment that consumption good...Noah,<br /><br />Ignoring for a moment that consumption goods are not a store of value (or at least, to the extent that they are they should be classified as capital assets), how do you earn a a real rate of -inflation holding the consumption basket? The real price of the consumption basket grows at a rate of zero, and the nominal return is +inflation.<br /><br />And why would you hold money over tbills as an investment? Holding money is for criminals and tax evaders. <br /><br />KAnonymousnoreply@blogger.com