A friend sent me the same article. I agree with Krugman for the most part, but he doesn’t even get into all the reasons that inflation and interest rates are on a downward trend.
He misses inequality: more and more wealth is going to wealthy people who largely save it, increasing the supply and decreasing demand for loanable funds.
He’s a smart guy, he probably knows this and may have written about it elsewhere.
He may also be too partisan and liberal to admit that nearly all of the GOP and a big slice of the Democrats are firmly anti-inflation, and even more so the elites of the parties. We only got inflation now because of Covid/Ukraine, both unexpected and unprecedented events.
While I am personally pro-inflation, this is a very unpopular view and I know it will never prevail among the powerful in the US, EU, Japan, etc.
