Saturday, July 16, 2011

Economic Policy Journal Says Professor Krugman is Being Silly

I didn't realize how many time I'd written on the double-Doktor, Nobel Laureate, John Bates Clark Medalist and blogger. Links below.

In June 20th's "Paging Paul Krugman: The Poor and Middle Class Pay the Inflation Tax" I said:
Professor Krugman has stopped saying that QE2 doesn't contribute to commodity inflation.
A good thing. He was starting to sound like a moron.
His latest offering was to the effect that headline inflation would be down in the next report because of the 10% decline in gasoline prices. He didn't mention that 'headline' has already bled into 'core', which will be higher.
Or that he has been arguing against the mere mention of the headline number.

His second-to-last inflation post was to the effect: "Hmmm, there may be a whiff of inflation but 'tis a trifle".
There's a good academic, laying the groundwork for an argument pivot....
Here's EPJ:
Krugman Tries to Explain His Way Out of the Spike in Core Price Inflation
This is a hoot. The latest price inflation numbers are out, and "headline inflation", which includes food and energy, is down a bit, not in anyway signalling the end of inflation. These numbers can fluctuate a bit, especially at the start of a major price inflation run.

But, what is climbing is that laggard, core inflation, which deflationistas around the world cling to as proof that there is no inflation. Because of its spike, Krugman has to do some pretty fast dancing:
OK, so the new report is out. Headline prices actually down, as predicted, but core inflation running above the Fed target on a monthly basis.
So what should we conclude?
First, no hyperinflation here.
Huh. When you are defending the deflation position, and your first defense is that there is no hyperinflation, you are in serious trouble.

But, then when you have to also split the core, you should probably just give up. Krugman now wants to measure prices by looking only at prices that don't move up much....MORE
Also at EPJ:
Bachmann Recently Left Church that Holds that the Pope is the Antichrist

Some prior posts on PK:
Dear Paul Krugman: "Wheat Collapsing as Protests Prompt Speculators to Desert Food"

Dear Paul Krugman: "Fed’s Hoenig: Policy Plays Role in Commodity Price Surge" Plus: The Octomom on birth control

Paul Krugman Wants You to Die; Germans Consider him Unbalanced, wish he'd change name.

"Another Challenge for Krugman"
Bob Murphy is not the only economist putting out a challenge to Paul Krugman.

Adam Ozimek, of Modeled Behavior, would like to see Krugman take on the economist, known as, Dr Chest.

Ozimek writes that  Lauren Cohen is an economics professor at the Harvard Business School and a champion powerlifter and strongman. He is among the top 20 powerlifters in the world in his weight class, and he was runner-up two years in a row for the best paper in the Journal of Finance. He can bench press 500 pounds and squat-lift 700 pounds.

In the pic above, Cohen is flipping an 800 pound tire. "Let’s see Krugman do that," writes Ozimek....MORE
There's more but I'm getting a bit concerned about the amount of time devoted to the subject.
Here's the Google search of the site: Krugman