Krugman: No Inflation During Bubble Years,If You Exclude Food, Energy, and Home Prices!

by Nov 21, 2013Liberty & Economy0 comments

Oftentimes, Paul Krugman maintains his Keynesian theology by deliberately missing the point of people who say things that don't conform to it. In a post yesterday, he takes issue with the argument that there was indeed substantial price inflation during the housing bubble years and the corollary that the Fed monetary policy was "too loose", meaning that it was printing too much money out of thin air. The argument is that the inflation might not have shown up in the CPI, it showed up in food and energy prices, and in the bubble itself, with its rising home prices.

Oftentimes, Paul Krugman maintains his Keynesian theology by deliberately missing the point of people who say things that don’t conform to it.

In a post yesterday, he takes issue with the argument that there was indeed substantial price inflation during the housing bubble years and the corollary that the Fed monetary policy was “too loose”, meaning that it was printing too much money out of thin air. The argument is that while the inflation might not have shown up in Fed’s preferred price index, it showed up in food and energy prices, and in the bubble itself, with its rising home prices.

His counter-argument? If you look at the Fed’s preferred measure of price inflation, which excludes food and energy, “inflation was indeed quiescent”, and as with an alternative index that includes food and energy, one shouldn’t look at home prices as any indication of inflation because they were “wildly erratic”.

So he just begs the question and defines “inflation” according to whatever measure excludes the price increases seen during the bubble years, the very same intellectually dishonest cherry-picking of whatever data conforms to his view that he just accused someone else of.

(For another similar example of this M.O. of Krugman’s, see this post of mine from yesterday, and for more on his inflation “gotcha” argument, see here.)

Did you find value in this content? If so and you have the means, please consider supporting my independent journalism.

About Jeremy R. Hammond

About Jeremy R. Hammond

I am an independent journalist, political analyst, publisher and editor of Foreign Policy Journal, book author, and writing coach.

My writings empower readers with the knowledge they need to see through state propaganda intended to manufacture their consent for criminal government policies.

By recognizing when we are being lied to and why, we can fight effectively for liberty, peace, and justice, in order to create a better world for ourselves, our children, and future generations of humanity.

Please join my growing community of readers!

 

Download my free report 5 Horrifying Facts about the FDA Vaccine Approval Process.

Download my free report 5 Horrifying Facts about the FDA Vaccine Approval Process.

My Books

Related Articles

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Shares
Share This