Saturday, May 10, 2014

Please Tuck This Paul Krugman Quote Away Somewhere

By Chris Rossini

The broken-record Nobel Prize winner, Paul Krugman, is once again complaining that there isn't enough inflation. (He should look at my bills).

Here's Krugman's quandry:
Below-target inflation is already a problem, and a very serious problem if you don’t have an easy way to provide economic stimulus.
For all the new kids, the monetary central planners have "inflation targets". It's the amount of purchasing power that they plan to rob you of. Yes, thieves set goals too.

Well, according to government's bogus CPI calculations, they're not reaching their goals.

Paul Krugman's job is similar to that of a boxing manager. He sits on the outside of the ring encouraging and coaching the central planners who are fighting a fight that they can't possibly win. You see the central planners have stepped into the ring against the undefeated champ: Economic Law.

Krugman also turns around tries to get the cheering crowds into it to. He waves towels...whatever it takes to keep the mob cheering.

Here's the latest advice to the planners in the ring. Tuck this away for the day when the planners receive the final knock-out punch!

"Controlling inflation may be painful, but we do know how to do it."
- Paul Krugman May 10, 2014

Chris Rossini is on Twitter


  1. Why do these people want inflation? I don't see that this does most of us any good.

  2. Interesting game being played here. If the US economy has a problem with inflation in the future, we know Krugman gave bad advice. However, how do you measure whether Krugman gave good advice? Nearly six years ago, the hard money crowd predicted imminent hyperinflation. Six years later, the annual rate of headline inflation is 1.5%. Sure we can pretend the govt number is rigged but they were talking about the govt number when they predicted hyperinflation. No, they were not taking about the growth rate of the monetary base. They were talking about hyperinflation as in you carry a bag of money to the store to buy a can of tuna.

    So there is a lack of symmetry here. How do we stop that? We draw the line today and say for the past 6 years Krugman was correct and the Austrian school was wrong. Now we can start the game over fresh and see where we are in the next 6 years.

    So far Krugman 1, Austrian school ZERO

  3. Like Jerry observed above, hyperinflation has not yet occurred. Look, anyone who has ever burned federal reserve notes for heat, knows you can't get much warmth out of them without a good dose of gasoline.

  4. Just noticed today that the price of a load of laundry (self service) in brown stone brooklyn increased 15% over last week. huh.