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To: pigdog
Indeed, maybe you ARE missing something. Quite a bit in fact. Try again ... or even try studying what the entire paper says.

OK, so you can't point to the part in the paper which supports your claim. You just deny what the paper does clearly state and insist the paper says something else, but you can't point to it? That's about par for the course.

378 posted on 10/18/2006 7:56:23 PM PDT by Always Right
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To: Always Right
Apparently you haven't been willing to look at the paper further since you say:

"... Kotlikoff assumed that he would keep after tax prices constant by monetary policy ... "

In the paper itself (contrary to your claims) it says:

"Therefore a rise in the price level would be possible only if accommodated by an increase in the money supply. Put another way, without monetary accommodation, prices faced by consumers under the FairTax would not rise. Any changes to the level of monetary accommodation, i.e. increase in the money supply, would cause prices to increase in the same proportion."

To translate that for you, that says if there is inflation (by an increase in the money supply - or "monetary accommodation") then consumer prices would also rise. DUH!!!

So yes, indeed, you "missed it".

411 posted on 10/19/2006 10:04:06 AM PDT by pigdog
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