Re: Lyle's Laws

Michael Lorrey (
Fri, 03 Jan 1997 18:08:20 -0500

Eliezer Yudkowsky wrote:
> They also point out that the inflation-vs.-unemployment curve is a
> simple fallacy; the *only* thing that causes inflation is the government
> printing money.

This is not entirely true. if the government doesn't print money, yet
the economy heats up, thus increasing the velocity of money (i.e. how
frequently it changes hands), money becomes scarce, and you can cause a
bust by choking off the economy. One of the best things about what
Greenspan has been doing is refining the feds management of the money
supply and reserve rates to dampen out the feedback effects of past
boom/bust cycles, and maintain a steady supply of money that takes into
consideration the varying velocity of money. This sort of program is
needed right now to prepare us to live in a more libertarian economy
that is stable and uninfluenced by past stupidities.

Also, recent studies (one of which got its authors Nobel prizes in
economics this year) of economic relationships where one person is
ignorant of information that the other person has, have shown that such
relationships also have an effect on the economy when taken in gross as
mass behaviors. This is where openness does make sense. It does
encourage economic stability.


Michael Lorrey ------------------------------------------------------------ President Northstar Technologies Agent Inventor of the Lorrey Drive

Website: Now Featuring: My Own Nuclear Espionage Agency (MONEA) MIKEYMAS(tm): The New Internet Holiday Transhumans of New Hampshire (>HNH) ------------------------------------------------------------ Transhumanist, Inventor, Webmaster, Ski Guide, Entrepreneur, Artist, Outdoorsman, Libertarian, Certified Genius. ------------------------------------------------------------ If I saw further than others, it is because I had an unjoggled view from standing on my own two feet. - Mike Lorrey