Krugman: Conservatives Are Delusional

Krugman: Conservatives Are Delusional –

I agree with most of that, but we should be cautious on the issue of the measure of inflation.

The US method of measuring inflation is increasingly out of touch with the actual financial pressures people face, with major expenditures that have increased more than other things excluded because their prices are “volitile”.

That variability hasn’t prevented the overall trend from being up, however.

I also don’t see the relevance of volatility- if the price is higher, it’s higher, and if inflation is volatile then maybe figures should reflect that rather than a number that is more stable at the cost of being quite artificial and increasingly not reflective of what is going on in the economy.


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