Paul Krugman

@paulkrugman ↗

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Last Checked April 1, 2023

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Sat Jan 28 13:49:00 +0000 2023

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Paul Krugman @paulkrugman

Textbook macro says that inflation can become entrenched via expectations. But medium- and long-term inflation expectations never rose much, and are now back to roughly pre pandemic levels 7/ https://t.co/Qa1h9dcQEt — PolitiTweet.org

Posted Jan. 28, 2023

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Paul Krugman @paulkrugman

Team Stagflation nonetheless argues that inflation will remain high, that bringing it down will require an extended period of high unemployment, as happened in the 1980s. And of course they could be right. But what's their theory of the case? 6/ — PolitiTweet.org

Posted Jan. 28, 2023

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Paul Krugman @paulkrugman

You could argue that the textbook model is all wrong, and inflation will be sticky for other reasons. But most of the data seem to show inflation falling fast, and attempts to deny the good news are getting increasingly contorted 8/ — PolitiTweet.org

Posted Jan. 28, 2023