Afternoon Must-Read: Paul Krugman: Core Inflation’s Success

Paul Krugman: Core Success: “Cecchetti and Schoenholtz on core inflation…

reminds me that this concept, too, has been a huge success…. Those of us who looked at core inflation came in for a lot of abuse during the ‘debasing the dollar’ period of 2010-2011, when right-wingers were writing to Ben Bernanke to attack his policies and Paul Ryan was warning that rising commodity prices were the harbinger of runaway inflation. Assertions that fundamental inflation hadn’t gone up were met with ridicule and insults. But sure enough, the commodity price effect on inflation was a blip, and went away. And the inflation hawks learned their lesson, and revised their models. Hahahaha–just kidding.”