Paul Krugman: Inflation Madness


 

One thing I gather from various economic discussions as well as some of the trolls on this blog is that there’s a widespread view that the kind of monetary policy I advocate — which includes a higher inflation target — isn’t just wrong; it’s madness. It is, I am told in no uncertain terms, proof that I am no longer a real economist, if I ever was.

So I guess it’s worth pointing out the long list of respectable economists with similar views. The point is not to argue from authority — it is, instead, to knock down the other side’s attempt to argue from authority, on the grounds that “nobody” believes that this is a good or even legitimate idea.

So, a brief list of well-known economists who have been pro-inflation under circumstances like those we face today:

Greg Mankiw and Ken Rogoff.

Olivier Blanchard, the chief economist of the IMF.

Mike Woodford, arguably our leading macroeconomic theorist.

Lars Svensson, the deputy governor of the RijksbankRiksbank, although on his way out because his colleagues disagree.

Ben Bernanke, back when he was lecturing the Japanese.

If you think this is a terrible idea, that’s your right. But if you imagine that it’s outlandish and somehow uneconomistic, you’re just ignorant.

Inflation Madness – NYTimes.com

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