Paul Krugman

@paulkrugman ↗

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Last Checked March 18, 2022

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Sun Feb 13 18:49:20 +0000 2022

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Paul Krugman @paulkrugman

And because not much upside inflation risk, you can move gradually, so not much recession risk either. It's all good! Except that you end up reining in growth and jobs at a point with substantial slack, and hence big economic waste 3/ — PolitiTweet.org

Posted Feb. 13, 2022

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Paul Krugman @paulkrugman

If you start raising rates with the economy still well below capacity, which in retrospect is what happened in 2015, not much inflation risk on the upside; but bc inflation is sticky downward, not much on the downside either. 2/ — PolitiTweet.org

Posted Feb. 13, 2022

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Paul Krugman @paulkrugman

Not the whole story; the supply-chain stuff and Great Resignation have added a bunch of further uncertainty. But in general, central banks that don't feel themselves to be facing hard choices are probably playing it much too safe, at the economy's expense 4/ — PolitiTweet.org

Posted Feb. 13, 2022