Paul Krugman | Bitcoin, Inflation and the Misguided Fear of Government Money Creation – The New York Times

Opinion Columnist

“I had some fun yesterday with a tweet by Josh Mandel, the would-be MAGA senator from Ohio, who has declared his allegiance to fundamental American values: God, family and Bitcoin. I didn’t have space to go on about some of the things he has said about Bitcoin, which really is at the center of his campaign. But I was struck in particular by this tweet from October, in which he appears to assert that fiat money (dollars aren’t backed by anything except their official role as legal tender, and dollars can be created at the discretion of appointed officials at the Fed) is a crucial enabler of inflationary spending:

Mockery aside, is there any truth to that assertion? Has the U.S. government relied on the printing press to cover deficits and thereby fed inflation?”

This column is well worth finishing, and the reward is at the end.

Krugman recomends a cover band

doing the Beatles song Taxman.

Paul Krugman | History Says Don’t Panic About Inflation – The New York Times

Opinion Columnist

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“Back in July the White House’s Council of Economic Advisers posted a thoughtful article to its blog titled, “Historical Parallels to Today’s Inflationary Episode.” The article looked at six surges in inflation since World War II and argued persuasively that current events don’t look anything like the 1970s. Instead, the closest parallel to 2021’s inflation is the first of these surges, the price spike from 1946 to 1948.

Wednesday’s consumer price report was ugly; inflation is running considerably hotter than many people, myself included, expected. But nothing about it contradicted C.E.A.’s analysis — on the contrary, the similarity to early postwar inflation looks stronger than ever. What we’re experiencing now is a lot more like 1947 than like 1979.

And here’s what you need to know about that 1946-48 inflation spike: It was a one-time event, not the start of a protracted wage-price spiral. And the biggest mistake policymakers made in response to that inflation surge was failing to appreciate its transitory nature: They were still fighting inflation even as inflation was ceasing to be a problem, and in so doing helped bring on the recession of 1948-49.”