"The case for inflation panic" has "died," economist Paul Krugman argued in a Saturday morning Twitter thread.
Krugman writes that the fears stemmed in part from a belief that the Federal Reserve's "intellectual framework," which includes making a distinction between "volatile commodity prices" and "inertial core inflation," was wrong and the central bank was failing to consider that soaring lumber prices, for example, were "harbingers" rather than "transitory shocks." But Krugman pointed to a swift decline in lumber prices since they peaked in May as evidence to dismiss that theory, and highlighted a recent analysis from the White House Council of Economic Advisers that makes a similar case.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
-
'Horror stories of women having to carry nonviable fetuses'Instant Opinion Opinion, comment and editorials of the day
-
Haiti interim council, prime minister sworn inSpeed Read Prime Minister Ariel Henry resigns amid surging gang violence
-
Today's political cartoons - April 26, 2024Cartoons Friday's cartoons - teleprompter troubles, presidential immunity, and more
-
Empty-nest boomers aren't selling their big homesSpeed Read Most Americans 60 and older do not intend to move, according to a recent survey
-
Brazil accuses Musk of 'disinformation campaign'Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
-
Disney board fends off Peltz infiltration bidSpeed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
-
Disney and DeSantis reach detenteSpeed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
-
Visa and Mastercard agree to lower swipe feesSpeed Read The companies will cap the fees they charge businesses when customers use their credit cards
-
Reddit IPO values social media site at $6.4 billionSpeed Read The company makes its public debut on the New York Stock Exchange
-
Housing costs: the root of US economic malaise?speed read Many voters are troubled by the housing affordability crisis
-
Feds cap credit card late fees at $8speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
