tag:blogger.com,1999:blog-1331441403058020963.post8208874734455385142..comments2024-03-28T06:49:24.930-04:00Comments on International Political Economy at the University of North Carolina: Why We Shouldn't Be Worried About Inflation... YetThomas Oatleyhttp://www.blogger.com/profile/14092437150746625670noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1331441403058020963.post-91513475072766384152010-01-15T15:37:24.869-05:002010-01-15T15:37:24.869-05:00Well, Bernanke HAS to say that he can control infl...Well, Bernanke HAS to say that he can control inflation in public, even if he's worried in private. Right? Maybe he thinks: hey, if inflation turns upward, I do have to sell debt but I don't have to necessarily sell securities at fire-sale prices. I could also sell Treasuries, like I normally would, and hang onto the riskier assets until I don't have to lose money on them.<br /><br />As for Krugman... maybe he's wrong about the similarities with Japan. Maybe not. I think it's worth entertaining the notion, however, especially since we've just spent a year with almost no inflation despite a monetary policy at the zero-bound and large amounts of quantitative easing. That looks like Japan. Whether it persists or not is another question, but just because Krugman is asking it doesn't mean it isn't worth asking.<br /><br />- wkwKindred Winecoffhttps://www.blogger.com/profile/14330671232391851377noreply@blogger.comtag:blogger.com,1999:blog-1331441403058020963.post-74849884195464905172010-01-15T11:33:08.086-05:002010-01-15T11:33:08.086-05:00Dude! I was with you, until you quoted Krugman.
...Dude! I was with you, until you quoted Krugman.<br /><br />P-Kroog deserved his Nobel Prize. But he knows no more about macro than I do. He is a total shill for the Obamadmin. And saying we should fear deflation is an excellent justification for our current policies.<br /><br />Nonetheless, your OTHER points are well taken.<br /><br />I would point out that Ben Bernanke really did say that he could control inflation. I was there, at the AEA meetings. He said. He is wrong about that.<br /><br />Still, YOU may be right that he won't need to. That's a different point. A good point, but a different point.Michael Mungerhttps://www.blogger.com/profile/03518293278821775533noreply@blogger.com