On his blog, Paul Krugman writes:
So I’m giving the Robbins lectures in a couple of weeks, which means that I have to actually think a bit.
Ah… it’s refreshing to hear from the source that his columns are as mailed-in as they seem. From today’s column:
First things first. It’s important to realize that there’s no hint of inflationary pressures in the economy right now. Consumer prices are lower now than they were a year ago, and wage increases have stalled in the face of high unemployment. Deflation, not inflation, is the clear and present danger.
Oil prices jumped around 30 percent this month, the largest monthly rise since March 1999… The dollar hit a five-month low against a basket of other currencies. A weak dollar makes oil cheaper for holders of other currencies and tends to support prices.