Yanis Varoufakis: “Greece Will Adopt the Bitcoin If Eurogroup Doesn’t Give Us a Deal”

[Taitertots]

66. How about you stop making non-sense statements that require a sourced response?

I'm not going to walk you through the most basic concepts in economics. Your responses are indicative of a child like understanding of the concepts that you are trying to discuss. I'm not going to waste my time trying to explain basic concepts to you when Paul Krugman wrote a whole book explaining them. It's pretty obvious that a discussion on the impacts of deflation based on economic modeling can't happen due to your lack of understanding of basic concepts. It's not an appeal to authority to ask you to read books (with sourced econometric data) about the topic before discussing it.


Just look at the AS-AS graph that you posted. If P* drops, People demand more, suppliers produce less, and the reduction in output causes shortages.


The currencies used by the electronics industry are not experiencing deflation. So claiming price drops in the electronics industry means deflation is good is disconnected from reality. You are making one of the most basic errors in economics by conflating individual price movements with Inflation/Deflation. The electronics industry is thriving in a period of low inflation, not deflation.


"My statement was that as price drops, demand increases."
The demand curve is downward sloping. Duh!. It's totally irrelevant to the discussion.