Paul Krugman

Paul Krugman @paulkrugman

How can gouging cause inflation? Even if corps have monopoly power, weren’t they already exploiting it to the max, so that it caused high but not *rising* prices? Well, let’s get wonky and learn from labor economics 11/ — PolitiTweet.org

Paul Krugman @paulkrugman

Position #1 is clearly wrong — but I don’t know any prominent figure who holds it. On the other hand, position #3 is also dubious economics. Gouging is probably a small factor, but it could be *a* factor. Why the vitriol? 10/ — PolitiTweet.org

Paul Krugman @paulkrugman

Consider three positions. 1. Gouging is the main cause of inflation 2. Gouging could be a contributory factor 3. Gouging cannot possibly be a cause of inflation, and anyone saying otherwise is ignorant and dangerous 9/ — PolitiTweet.org

Paul Krugman @paulkrugman

Many economists disagree, which is a defensible position. But the vitriolic nature of their attacks — talking about gouging is like prescribing ivermectin or injecting bleach — is weirdly over the top, and should provoke some self-reflection 8/ — PolitiTweet.org

Paul Krugman @paulkrugman

Now, what about price-gouging? Elizabeth Warren and other Democrats have been arguing that some companies are taking advantage of an inflationary economy to increase markups, making inflation worse 7/ — PolitiTweet.org

Paul Krugman @paulkrugman

What story makes sense here? I’d say that we have a moderately overheated economy that the Fed should be and already is acting to cool off: interest rates relevant to real spending are way up. Plus stuff that is, yes, transitory 6/ https://t.co/Z6RFJc5J8J — PolitiTweet.org

Paul Krugman @paulkrugman

And the bond market seems to expect elevated inflation for the next year or so but more or less normal inflation after that 5/ https://t.co/fXeDJuMcbs — PolitiTweet.org

Paul Krugman @paulkrugman

So have near-term wage expectations, an indicator of underlying inflation running about a point below recent wage hikes 4/ https://t.co/eKZRcSuYsA — PolitiTweet.org

Paul Krugman @paulkrugman

That’s too high, but we don’t have spiraling inflation due to unanchored expectations. Consumer surveys suggest medium-term inflation expectations have remained fairly stable 3/ https://t.co/RZr8H1wYI0 — PolitiTweet.org

Paul Krugman @paulkrugman

First, where are we on inflation? As I read it, we probably have underlying inflation of 3.5-4 percent, with a higher headline rate reflecting probably temporary factors like supply chain disruptions and Ukraine fallout 2/ — PolitiTweet.org

Paul Krugman @paulkrugman

OK, settled in with internet access and not riding 40 miles a day over hills and gravel. Column resumes tomorrow; but I want to weigh in today with a very long thread on inflation, especially the weirdly ugly debate over price-gouging 1/ — PolitiTweet.org

Paul Krugman @paulkrugman

Made it. Did anything happen the past 10 days? Anyway, I probably won't be back on duty until Sunday https://t.co/Fjfivzmm6e — PolitiTweet.org

Paul Krugman @paulkrugman

RT @JanetGornick: Tonight! Registration link below. @GCPresents @stone_lis — PolitiTweet.org

Paul Krugman @paulkrugman

The thing is, digital payment systems are in widespread use; Venmo, introduced the same year as Bitcoin, is ubiquitous. But crypto remains a hammer in search of a nail; or, less charitably, a cult driven by technobabble and libertarian derp. 6/ — PolitiTweet.org

Paul Krugman @paulkrugman

"Overall, despite the legal tender status of bitcoin and the large incentives implemented by the government, the cryptocurrency is largely not an accepted medium of exchange in El Salvador." Most businesses don't take it; few people use it 5/ — PolitiTweet.org

Paul Krugman @paulkrugman

Then El Salvador went all in: making Bitcoin legal tender, subsidizing the adoption of a Bitcoin app. Optimal conditions for turning it into a functioning form of money. And ... 4/ — PolitiTweet.org

Paul Krugman @paulkrugman

But Bitcoin and other cryptocurrencies, which were supposed to replace old-fashioned money, keep failing to find real-world uses, despite enormous hype. Still, the revolution was always coming; just you wait 3/ — PolitiTweet.org

Paul Krugman @paulkrugman

Bitcoin was introduced 13 years ago — an eternity in tech time. It has attracted a fanatical evangelical base, despite constant sniping from skeptics wondering what problem, exactly, it solves. The skeptics are constantly told that they're just dinosaurs who don't get it 2/ — PolitiTweet.org

Paul Krugman @paulkrugman

Yes, I'm in a different time zone. And yes, given everything else going on, cryptocurrency isn't a priority. But this is still interesting: a status report on El Salvador's attempt to become a crypto republic 1/ https://t.co/HeaA9zSnNH — PolitiTweet.org

Paul Krugman @paulkrugman

PS: I’ve trained hard for this one. On the other hand, I’m 69. I guess we’ll see https://t.co/sQAmuxgaUI — PolitiTweet.org

Paul Krugman @paulkrugman

Notice of interruption of service: I'll be off both the column and the newsletters for 2 weeks. I might tweet occasionally early this coming week. After that, I'll be on a bike trip, hopefully worrying about the next hill instead of the next CPI print. Back online mid-month — PolitiTweet.org

Paul Krugman @paulkrugman

Speak for yourself. I expected maximum pettiness from day one. And in general, the pettiness of the powerful is an amazing thing to watch. — PolitiTweet.org

Paul Krugman @paulkrugman

RT @nytopinion: “As the world becomes a more dangerous place, things we take for granted, like large-scale trade in food, may be far more v… — PolitiTweet.org

Paul Krugman @paulkrugman

RT @francska1: Russian state TV says it has discovered an "organisation of gays and lesbians" in a building in Mariupol where Ukrainian "na… — PolitiTweet.org

Paul Krugman @paulkrugman

Whatever you think of Disney, the attack on Big Mouse is an assault on democracy https://t.co/MZmNOmAnyZ — PolitiTweet.org

Paul Krugman @paulkrugman

RT @jasonfurman: A broader post on the US-Euro area inflation differential numbers with commentary on points raised by @menzie_chinn that w… — PolitiTweet.org

Paul Krugman @paulkrugman

Another interesting point is that Macron won despite plunging consumer confidence, although to be fair the French were fairly optimistic until the Putin shock https://t.co/cMjTOces93 — PolitiTweet.org

Paul Krugman @paulkrugman

RT @davidfrum: @TheAtlantic "Too often, an out-of-touch media elite has failed to understand these people, connected to the political proce… — PolitiTweet.org

Paul Krugman @paulkrugman

More seriously, Macron, though widely disliked, successfully made the case that his opponent was a menace. Biden's case would be even stronger. After all, Le Pen — gasp! — has actually conceded 2/ — PolitiTweet.org

Paul Krugman @paulkrugman

I wonder whether Putin's invasion of Ukraine helped focus French minds about the threat to democracy. If so, possibly a case where the sword was mightier than Le Pen (goes into hiding) 1/ — PolitiTweet.org