Krugman’s blog, 7/20/15

There was one post yesterday, “Undebasing the Dollar:”

Remember when the likes of Paul Ryan accused Ben Bernanke of printing too much money, solemnly intoning that “There is nothing more insidious that a country can do to its citizens than debase its currency”? A big part of the justification for this fear-mongering was that commodity prices were rising sharply from their 2009 low, which the usual suspects claimed was a harbinger of rising overall inflation.

So, look at what’s been happening to commodity prices, including gold, recently.

Does this mean that deflation looms? Is it time to demand that Janet Yellen roll the printing presses?

I mean, it could be that the inflation hawks have learned their lesson, that they realize that volatile commodity prices aren’t a very good guide to policy, and that it makes sense to focus on core inflation. But I’ve seen no sign of a rethink.

Or it could be that inflation phobia is deep pure and simple, and no evidence will shake the state of perm-fear.

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