krugman on inflation

Post #346,305 by boxley 8/17/11 7:44:45 PM Reply	krugman on inflation http://original.anti...e-aliens-save-us/ ÂKrugman: ÂThink about World War II, right? That was actually negative social product spending, and yet it brought us out. I mean, probably because you want to put these things together, if we say, ÂLook, we could use some inflation.Â Ken and I are both saying that [Rogoff nods], which is, of course, anathema to a lot of people in Washington but is, in fact, what basic logic says. ItÂs very hard to get inflation in a depressed economy. But if you had a program of government spending plus an expansionary policy by the Fed, you could get that. So, if you think about using all of these things together, you could accomplish a great deal.Â out of the horses mouth Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 55 years. meep
Post #346,317 by Another Scott 8/18/11 12:47:13 AM Reply	And? I'm glad I don't read Justin if that's an example of his reasoning ability. What else has PK said recently about WW-II? http://krugman.blogs...hat-a-lovely-war/ Should we assume that you agree with Justin and think PK thinks that we need to go to war with space aliens, or perhaps that PK agrees with Paul Ryan that we need to cover the moon with yogurt? Inquiring minds... Cheers, Scott.
Post #346,334 by jake123 8/18/11 10:39:17 AM Reply	He doesn't seem to get it a little inflation is absolutely necessary to the continued functioning of an industrial economy. Deflation is absolutely terrible for just about everyone... terrible in a way that only people who lived as adults in the dirty thirties can understand. We're very close to deflation now, and once it gets started it's very hard to stop. We need inflation. The point about WW II that is in the quote is that even completely wasteful spending to spur inflation when you're in a deflationary spiral is better than no spending. Spending with actual social utility (i.e. butter, not guns) is even better. Along the way, I see that Bachmann has promised two dollar gas, and O'Donnell got owned on CNN by Larry King's replacement.
Post #346,336 by boxley 8/18/11 10:49:34 AM Reply	nother seems to think there is no inflation apparently he doesnt buy groceries Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 55 years. meep
Post #346,342 by jake123 8/18/11 12:31:10 PM Reply	That Harvard prof had a really interesting presentation about that... the one that set up the consumer finance bureau. You should go watch it. Helps to explain a lot... basically there's more than one kind of inflation. For that matter, you can go through Krugman's backscroll to see him discussing that... though in a far more wonkish manner.

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