Friday, March 18, 2011

WSJ Sticks a Pen in Paul Krugman's Deflationist Eye

There’s really nothing here to shake my view that deflation, not inflation, is the threat.-Paul Krugman, November 2010 

And today's WSJ jab:
Inflation, once believed dead, is showing a pulse. While price increases are unlikely to become rampant, consumers are lifting their inflation expectations, and more businesses are marking up their selling prices...Price increases have already spread beyond gas and food. The CPI report showed February gains in new vehicles, medical care, and entertainment. Airline fares increased 2.1% in February, the fourth consecutive monthly increase of over 2%, the CPI report said

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