Paul Krugman

@paulkrugman ↗

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Last Checked Feb. 18, 2023

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Sun Jan 01 18:34:55 +0000 2023

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Paul Krugman @paulkrugman

A business that raises its prices doesn't do so because the Fed has increased the money supply. The chain of events that leads to that price rise may have started with the Fed, but the firm is responding to its own market conditions 2/ — PolitiTweet.org

Posted Jan. 1, 2023

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Paul Krugman @paulkrugman

Continuing this discussion. Again, Olivier is tapping into an important point often missed in monetary/macroeconomics: in the end, it all comes down to individual motives and decisions 1/ — PolitiTweet.org

1. Answering John Cochrane: no contradiction: Higher aggregate demand leads everybody to want to increase their pr… https://t.co/2fu3eBDwOY

Posted Jan. 1, 2023

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Paul Krugman @paulkrugman

There was a similar debate over the balance of payments back in the 1980s. The trade balance must equal the difference between savings and investment, and some argued that this made exchange rates and competitiveness irrelevant 3/ — PolitiTweet.org

Posted Jan. 1, 2023