Wednesday, February 1, 2012

Krugman Wants to Lock-In 4% to 5% Price Inflation


The man wants the Fed to target in that range. Your daily dose of madness from NYT's economist:
... the truth is that recent experience has made an overwhelming case for the proposition that the 2 percent or so implicit target prior to the Great Recession was too low, that 4 or 5 percent would be much better...The thing is, if we’re going to lock in a formal inflation target, now would be a good time to get it right, instead of waiting until the memory of the crisis fades and everyone gets complacent again.
Krugman is clearly not aware, but price inflation is soon headed for more than 5%, what is he going to call for then?


  1. Right, 4 to 5% inflation (in real speak 11-15%) and ZIRP? LMFAO That would take an insane amount of monetary expansion and produces one HELL of a bubble.

  2. Oops, in the last post I meant 11 to 12%. But heck, maybe 15% will be the reality.

  3. Paul Krugman to savers: &#$@! off.

    I'd really love to see his portfolio.

  4. Your daily dose of madness from NYT's economist:

    I think you forgot to put "economist" in quotes.

    1. That's why they are called "scare quotes."

  5. Now the interesting thing here is what would the unintended consequences be of a locked in inflation rate of 4-5%?

    Its time this man was put out to pasture!

  6. generous of him!

    Thank goodness he doesn't think it should be 10%!

    In actuality, if Krugman is targeting 4-5, you can be sure it'll be at least double or triple that.

    Also love the "now would be a good time to get it right."


  7. I wonder who keeps the accounts in the Krugman household?
    And are we going to see the Krugmans in bancruptcy court soon??

  8. Define "soon." By the midyear?

  9. I find it hilarious that many economists believe there is a magic number when it comes to price inflation. There is indeed a magic number, but they refuse to believe that the magic number is set by the market, as are all prices.

  10. He just suppurates arrogance!

  11. Im ok with this. I own gold.

    I bet Krugman, like before him Keynes and Samuelson, owns gold and silver and would profit from the central bank promoting heavier inflation.

  12. I doubt Krugman really understands what it's like to make 10 bucks an hour and have to struggle to buy gas and food, which is inflating at the targeted 'perfect' rate.

    I'll give him a hint: IT SUCKS!

  13. "To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."

    Krugman, August 2002

  14. When it comes to havoc, no one wreaks like Krugman. And when it comes to rotten brain cells, nowhere does the stench reek more than in his head.

    What does this Mongoloid have in common with Al Gore, Yasser Arafat and Barack Obama? They all won Nobel Prizes. In the case of the other three, they just debased the value of the award. In Krugman's case, he did the impossible: He debased something that used to have actual scientific and scholarship value!

    Oh...the other thing those four had in common: They all unleashed fraud upon the rest of the world. And in three of the four cases, they unveiled the value society places upon education.