Comments on: Is Counterfeiting Wrong? http://elidourado.com/blog/is-counterfeiting-wrong/ Wed, 25 Apr 2012 02:15:30 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Free Engraving for Non-Economists // Eli Dourado http://elidourado.com/blog/is-counterfeiting-wrong/#comment-469 Free Engraving for Non-Economists // Eli Dourado Mon, 29 Nov 2010 21:02:18 +0000 http://elidourado.com/?p=267#comment-469 [...] I don’t often comment there). I say surprisingly because, in my opinion, I have written many more interesting posts. In any case, the increase in traffic validated my theory of blog [...] [...] I don’t often comment there). I say surprisingly because, in my opinion, I have written many more interesting posts. In any case, the increase in traffic validated my theory of blog [...]

]]> By: Play the Advisor Game // Eli Dourado http://elidourado.com/blog/is-counterfeiting-wrong/#comment-213 Play the Advisor Game // Eli Dourado Wed, 01 Sep 2010 02:52:35 +0000 http://elidourado.com/?p=267#comment-213 [...] Sumnerian monetary policy (which I support) is off the table as “too obvious,” as is encouraging people to counterfeit. Third, your proposal needs to provide actual short-term stimulus, not just be good long-term [...] [...] Sumnerian monetary policy (which I support) is off the table as “too obvious,” as is encouraging people to counterfeit. Third, your proposal needs to provide actual short-term stimulus, not just be good long-term [...]

]]> By: Eli http://elidourado.com/blog/is-counterfeiting-wrong/#comment-34 Eli Thu, 01 Apr 2010 22:56:23 +0000 http://elidourado.com/?p=267#comment-34 Greg, that could be, but I think there is plenty of room to accommodate at least some additional inefficient regulation and nevertheless end up with an efficiency-improving result. Greg, that could be, but I think there is plenty of room to accommodate at least some additional inefficient regulation and nevertheless end up with an efficiency-improving result.

]]> By: Greg http://elidourado.com/blog/is-counterfeiting-wrong/#comment-33 Greg Thu, 01 Apr 2010 22:02:16 +0000 http://elidourado.com/?p=267#comment-33 By counterfeiting, wouldn't you be making it increasingly inefficient to print money (in effect, reducing long-term economic efficiency)? New regulations and perhaps changes to the production of money would become necessary to combat the counterfeiting. The government then ends up wasting more money, and in turn, counterfeiting becomes more costly. The cycle continues, and I would predict that the net outcome is a decrease in total economic efficiency. By counterfeiting, wouldn’t you be making it increasingly inefficient to print money (in effect, reducing long-term economic efficiency)? New regulations and perhaps changes to the production of money would become necessary to combat the counterfeiting. The government then ends up wasting more money, and in turn, counterfeiting becomes more costly. The cycle continues, and I would predict that the net outcome is a decrease in total economic efficiency.

]]> By: Eli http://elidourado.com/blog/is-counterfeiting-wrong/#comment-32 Eli Wed, 24 Mar 2010 15:30:33 +0000 http://elidourado.com/?p=267#comment-32 Ryan, in my second scenario, I am supposing that the amount of "fraud" that takes place is constant. Either the government does it or I do. The negative effects of this should be pretty much identical in either case. The difference is that when I spend the money, some *real, valuable thing* gets produced. When the government spends it, it does not. That's what I mean by efficiency and inefficiency. It sounds like you're saying that if the government takes longer to spend the money, it will be less inflationary. That may be so, but if the government has a particular target in mind, it will adjust to compensate for this, so I'm afraid that doesn't refute the argument. Ryan, in my second scenario, I am supposing that the amount of “fraud” that takes place is constant. Either the government does it or I do. The negative effects of this should be pretty much identical in either case.

The difference is that when I spend the money, some *real, valuable thing* gets produced. When the government spends it, it does not. That’s what I mean by efficiency and inefficiency.

It sounds like you’re saying that if the government takes longer to spend the money, it will be less inflationary. That may be so, but if the government has a particular target in mind, it will adjust to compensate for this, so I’m afraid that doesn’t refute the argument.

]]> By: Ryan Kinch http://elidourado.com/blog/is-counterfeiting-wrong/#comment-31 Ryan Kinch Wed, 24 Mar 2010 14:28:40 +0000 http://elidourado.com/?p=267#comment-31 What if we took into account the negative effects of perpetrating fraud throughout the economy? You are claiming to have bills that are not real. Also, if the government printing and spending of money is de facto inefficient, you are more likely to make other's dollars worth less, creating inefficiency similar to the theft argument above. What if we took into account the negative effects of perpetrating fraud throughout the economy? You are claiming to have bills that are not real. Also, if the government printing and spending of money is de facto inefficient, you are more likely to make other’s dollars worth less, creating inefficiency similar to the theft argument above.

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