Paul Krugman says doomsday economic predictions were wrong, and the Fed risks a recession if it trie

[Yo_Mama_Been_Loggin]

tries to respond to 'imaginary' stagflation

Grim predictions of a steep recession and runaway inflation are wrong, and the Fed risks sparking a recession if it tries to respond to a stagflation scenario where none exists, according to Nobel economist Paul Krugman.

"Until a few months ago many if not most economic prognosticators were far too negative about America's prospects. In particular, we went through what I think of as the summer of stagflation," the top economist said in an op-ed for the New York Times on Monday. He pointed to the grim economic forecasts last summer, when inflation touched a 41-year-high and market commentators began sounding the alarm for a severe recession, a debt crisis, and a stagflation crisis, with economists arguing that inflation could spiral out of control if prices remained high.

But prices have cooled, and when looking at more recent housing and labor market data, inflation could be dropping even more rapidly than Fed officials think, Krugman said. He previously predicted that the "true" rate of inflation was hovering around 4%, instead of the 6.5% recorded in December.

"To be fair, inflation may not yet be fully under control. But it has fallen enough, without any rise in unemployment at all, to make it clear that such predictions were wildly over-pessimistic," he added.

https://www.msn.com/en-us/money/markets/nobel-economist-paul-krugman-says-doomsday-economic-predictions-were-wrong-and-the-fed-risks-a-recession-if-it-tries-to-respond-to-imaginary-stagflation/ar-AA17cFRS

[BootinUp]

1. People who doubt the Krug are dumbasses. He's been closer to right

than just about anyone for 20 years.

[Jarqui]

2. They were overly pessimistic in the media to try to hand the GOP the House

After that, the American Oligarchs had to resume stashing their profits