Paul Krugman

@paulkrugman ↗

Deleted No

Hibernated No

Last Checked July 24, 2022

Created

Sun Jun 26 12:21:43 +0000 2022

Likes

378

Retweets

Source

Twitter Web App

View Raw Data

JSON Data

View on Twitter

Likely Available

Paul Krugman @paulkrugman

And getting entrenched inflation down probably requires a sustained period of above-normal unemployment. So we want to know if inflation is entrenched in expectations — something we try to judge not by 1-year expectations (which are mainly gas prices) but by medium term 3/ — PolitiTweet.org

Posted June 26, 2022

Preceded By

Paul Krugman @paulkrugman

Why do we care about expected inflation (as opposed to actual, current inflation)? Because it's central to stories about stagflation. In a world in which everyone expects 10% inflation, prices will tend to rise by 10% a year even if overall supply and demand are in balance 2/ — PolitiTweet.org

Posted June 26, 2022

Followed By

Paul Krugman @paulkrugman

So there was a big fuss when the long-standing Michigan Survey seemed to show a jump in 5-10 inflation expectations — Powell cited it in justifying the latest Fed hike. But it was a false alarm. Most of the bump has been revised away. 4/ — PolitiTweet.org

Posted June 26, 2022