Department of "Huh?!": Paul Krugman Does Not Understand What John Taylor and John Cogan Are Saying
The Changing Multiplier Since 1925...

Inequality: Confusing Cyclical and Structural Movements

Paul Krugman writes:

They're Baaack!: The one percent, that is. Emmanuel Saez has updated his distributional estimates (pdf), and as expected the top 1% share, which fell in the crisis, has resumed its upward march. How many people wrote stories about how rising inequality was a thing of the past, when anyone who had looked at the data at all knew about the cyclical issue?

I remember Greg Mankiw claiming back in the mid-2000s that the cyclical fall in inequality in the early 2000s reflected a shift in the structural trend, and Megan McArdle making the same claim much more recently--but I forget where I saw it…

Anybody else whom Paul is thinking of?

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