Sumner Uses Bernanke Stimulus For More Fun With Cantillon Effects

     Scott Sumner and Bob Murphy can make common cause when it comes to Krugman bashing but Sumner can't help himself and made another Cantillon comment today after the Fed's big announcement:

    
    "Hot off the wire, once again Fed stimulus raises interest rates and lowers bond prices:

Treasuries fell after the Federal Reserve said it will buy $45 billion a month of U.S. government debt, expanding its asset-purchase program while linking its main interest rate to unemployment and inflation.

    "Only the Fed can make the price of something fall by purchasing more of it. Ironically, the Fed wants to lower long term interest rates.

      "But as Bob Dylan once said

       "there’s no success like failure

     http://www.themoneyillusion.com/?p=18115#comments

     This of course got Greg Ransom going:

      "You are really beating the living daylights of this straw man, Scott, providing ‘brilliant’ arguments against assertions that no one ever claimed were entailed by the fact of Cantillon’s recounting of imperfect prices adjustments."

       "Extended golf clap."

       "This is just genius stuff, Scott."

       "Ascribe views to who classes of economists who don’t hold those view, then ‘expose’ how stupid those economists are with refutations of views they don’t hold."

      "That’s what good economic blogging is all about, isn’t it?"

      Why do I get the feeling this isn't the end of it?

       P.S. The common cause of the conservatives on Krugman is just so predictable: they claim it's not his Keynesian views but that he's so unfair to conservatives. He never admits any of them have anything worth listening to. So he's done a great job of getting inside their heads anyway. All they want is a few kind words from him...