QOTD: Amity Schlaes
by digby
There is apparently some kind of kerfuffle between some right wing economists and Paul Krugman which is not worth pursuing because it’s stupid. But this quote from the perpetually wrong Amity Schlaes (the Laurie Mylroie of wingnut economics) is one for the ages:
[I and some others] signed a letter a few years ago suggesting that Fed policy might be off, and that inflation might result. Well, inflation hasn’t come on a big scale, apparently. Or not yet. Still, a lot of us remain comfortable with that letter, since we figure someone in the world ought always to warn about the possibility of inflation. Even if what the Fed is doing is not inflationary, the arbitrary fashion in which our central bank responds to markets betrays a lack of concern about inflation. And that behavior by monetary authorities is enough to make markets expect inflation in future.
Krugman must be laughing his ass off. They cannot prove his point any more starkly than that.
.