This post originally appeared on The Finance Buff.
Yes, another inflation post. If the economists keep blogging it, I’ll keep linking to their stuff. We’ll see in a few years who got it right. I’ll have the records!
- Andy Harless in A Long Way to Inflation is much more worried about deflation.
- Casey Mulligan in What Monetary Policy Cannot Do recalls Milton Friedman’s claim that monetary policy cannot have a sustained effect on interest rates or inflation and finds the claim credible in light of recent data.
- Henry Blodget in Why Krugman’s Not Worried About Inflation describes the “pissing match” among economists over inflation. He links to Arthur Laffer (Here Comes Hyperinflation), Paul Kasriel (worried about inflation), and of course Krugman (no inflation worries). Krugman himself cites Mark Thoma’s and David Altig’s reaction to Laffer. So this is a dense source of economic prognostication.
I predict more debate, followed by some “I told you so” gloating, and then we’ll all forget about it until the next blast of fiscal and monetary stimulus in ??? years.