Krugman's latest comments on inflation

[BootinUp]

Last edited Tue Jul 5, 2022, 11:48 PM - Edit history (2)

Added a missing tweet. The twitter thread is going to be interesting too.

Link to tweet

Link to tweet

Link to tweet

Link to his previous thread on inflation

Link to tweet

[Phoenix61]

1. Transitory...like maybe a one off caused by a world wide pandemic?

Who could have possibly seen that.

[Baitball Blogger]

5. I have no doubt that the oil companies were gouging us to make up for the losses

they suffered during the lock downs and slow travel years.

[Just A Box Of Rain]

6. Or it could be that supply was down due to Putin's genocidal war

on Ukraine, while refining capacity fell, and we experienced a post-Covid demand peak that drove up oil prices.

[Baitball Blogger]

7. Oil companies did their share to slow or stop the refinement of oil.

https://consumerwatchdog.org/newsrelease/internal-memos-show-oil-companies-intentionally-limited-refining-capacity-drive-gasoline

https://www.cnbc.com/2022/06/15/biden-tells-oil-companies-in-letter-well-above-normal-refinery-profit-margins-are-not-acceptable.html

[Just A Box Of Rain]

10. A 16 year old press release about a 1996 memorandum?

[Baitball Blogger]

11. My bad. There were lots of options on Google and I wasn't paying attention to the date.

Try this one:

Oil refineries are making a windfall. Why do they keep closing?
Companies see only headaches on the horizon for refineries, undercutting the White House push to boost production

https://www.washingtonpost.com/business/2022/06/20/refineries-profit-gas-prices/

[summer_in_TX]

2. Here's Krugman's tweets for those who can't access them.

Paul Krugman
@paulkrugman
Well, Mr. Market seems to have decided that stagflation isn't happening after all 1/

Paul Krugman
@paulkrugman
2h
Replying to
@paulkrugman
Nobody gets this, no matter how many times we explain it — but the point is NOT that the market knows. Clearly, it often hasn't. Instead, we're talking about whether continuing inflation is getting entrenched in expectations. the way it was in the 70s 2/

Paul Krugman
@paulkrugman
2h
Clearly, it isn't. And with commodity prices plunging — wholesale gasoline down almost a dollar from its peak — it seems hard to see how that happens 2/

Paul Krugman
@paulkrugman
2h
What this means is no need for a Volcker-style painful disinflation. Get demand back in line with supply — which Fed tightening is doing as you read this — and inflation will come back in line. This episode is starting to look ... transitory 4/



–
Good news!

[cilla4progress]

3. Krugman is no

lightweight!

[Dawson Leery]

4. How to eliminate inflation:

1) Get the SEC and Federal Trade Commission onto the commodities traders and oil producers.

2) Increase daily oil output by 1-2 million barrels.

3) End the supply chain bottlenecks from Asia.

This is NOT the 1970's.

[multigraincracker]

8. Markets go up.

Markets go down.
Rich still float higher and
The poor still drown.

[BootinUp]

9. I edited the OP a little.