Paul Krugman (2015): The Regrettable Man https://krugman.blogs.nytimes.com/2015/02/28/the-regrettable-man/: 'Never mind the bubble denial; almost five years have passed since Greenspan declared that we were on the verge of becoming Greece, Greece I tell you, and wrote one of the most awesomely terrible passages in the history of economic policy: "Despite the surge in federal debt to the public during the past 18 months—to $8.6 trillion from $5.5 trillion—inflation and long-term interest rates, the typical symptoms of fiscal excess, have remained remarkably subdued. This is regrettable, because it is fostering a sense of complacency that can have dire consequences." Yep: he was annoyed at the markets for failing to deliver the crisis he was expecting, and considered it “regrettable” that the crisis had not arrived. Actually, though, this isn’t too different from the sentiment expressed by Paul Ryan and John Taylor, denouncing the Fed’s actions because they were preventing a fiscal crisis. Anyway, the saga of the inflation cult continues...
#noted #2020-02-29
