Debate on inflation vs deflation

Hamilton and Mish are debating on inflation. The problem is that Hamilton and other commodity price hypers are a part of problem causing severe economic crisis. Those who were hyping commodity since 2006 are creating the same problems now even in the midst of economic crisis. The problem makers are good at jumping on the bandwagons making economic and market cycles more volatile.



Hamilton's definition shows there was massive inflation during the great depression, starting in 1931!

Of course that is ridiculous. But it is what one must conclude if one defines inflation as an expansion of money supply alone.

That chart shows why it is foolish to look at one indicator as proof of inflation. A more practical approach and a more practical definition, gives more practical results.

Soaring base money supply is not proof "Big Inflation Is Coming" soon, just as it was not proof that "Big Inflation" was coming in 1931. There cannot possibly be any other logical conclusion when confronted with the data.
http://globaleconomicanalysis.blogspot.com/2009/01/is-big-inflation-coming.html