Paul Krugman | War, Inflation and Squandered Credibility – The New York Times

Opinion Columnist

“What does Jerome Powell, chair of the Federal Reserve, understand that Vladimir Putin doesn’t?

OK, I know that may sound like a trick question, or a desperate effort to offer a counterintuitive take on recent events. We may say that the Fed has gone to war against inflation, but that’s just a metaphor. Russia’s war on Ukraine, unfortunately, is all too real, leading to tens of thousands of deaths among both soldiers and civilians.

Yet the Fed and the Putin regime have this in common: Both took major policy actions this week. The Fed raised interest rates in an attempt to curb inflation. While Putin announced a partial mobilization in an attempt to rescue his failed invasion. Both actions will inflict pain.

One important difference, however — aside from the fact that Powell is not, as far as I know, a war criminal — is that the Fed is acting to maintain its credibility, while Putin seems determined to squander whatever credibility he might still have.”

David Lindsay Jr.
Hamden, CT | NYT Comment:
Did I write before that I love Paul Krugman. His columns are almost always excellent, and always challenging. It is good for the brain, like doing a hard jig saw puzzle, only you learn more reading Krugman than doing a jig saw puzzle,– about economics, politics and the world. The commenters here think Krugman has made a mistake in his assumption that a dictator has to worry at all about his credibility. They are wrong. Remember the French revolution. Where they might be on to something, it is hard to think of many examples were credibility is more important than raw power. There are more examples if you scrape. The Confederacy miss-estimated that England would support their uprising, because England valued their cotton more than it valued the human rights of slaves. My fear is that Putin will use these poor, pressed, 300,000 young men to secure the large eastern part of the Ukraine, and keep it. So I want NATO and the US to dramatically increase its support, and possibly even take over the Black Sea, for humanitarian reasons. The United States might have to go onto a war footing, without declaring war, to fight two wars at once. We need a war to slow the climate crisis, and a war to stop the spread of Putinism and fascist overreach. But we should not get confused. The climate crisis is the larger danger to our national and personal security. David Lindsay Jr is the author of the Tay Son Rebellion on 18th century Vietnam and blogs at InconvenientNews.Net.

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