If anyone is curious in a more comprehensive overview of what's going on in Georgia and how we got to where we are, you can read the below post. Just wrote it up because there's not much else I am capable of thinking about:

@woot_woot26 Japan's issue is that they basically spent time in a recession with a liquidity trap. Krugman 1998 is the goto piece on this

@CharlieEcon It's complicated. If you hike randomly then you'll make things worse (even when you need to cut later). If you hike while raising your inflation target, then you will make it easier to cut later.

@grapplerecon I support NGDP targeting as opposed to inflation targeting, so I don't think any particular inflation % is ideal. They do understand the economy well enough to control it, central banks have shown that they can hit 2% when they want to. It's just that they often don't.

@woot_woot26 But if you've borrowed at a 5% interest rate having expected 2% inflation and there's suddenly 10% deflation, then your original 3% real interest rate turns into 15% and you're having to pay back a lot more in real terms (vice versa if there's unexpected inflation)

@woot_woot26 this is only unexpected deflation

the largest member of the Warsaw pact is still a dictatorship that routinely invades its neighbors

@shriverist but point taken

@nominalthoughts good monetary policy will save liberalism

@pablo_derbez Yes, but this comes out of those two reasons.

@footy_chats Can read about this in more depth below:

@jamesanthony_us Yeah I don't believe in ABCT and I do think that heterogeneity in productivity growth will cause recessions with a fixed money supply (and also velocity changes over time).

@jamesanthony_us This is an argument for NGDP targeting over inflation targeting, which I generally agree with.

@GeorgeSelgin Yep, I share this view. Hence my support for NGDP targeting.

@IsaacJLiu i ended up finding these, i wonder what gives people so much hope

@therealpauldahl Same counterargument applies, the above are why economists oppose deflation. If not for those, the optimal change in the price level would in fact be deflation equal to the nominal interest rate.

@ChadNauseam Maia has a good explainer below: