9.16.2022 – but the truth that

but the truth that
nobody knows does nothing
to settle debate

In an article about the US and World economy, Mr. Paul Krugman used some very interesting words when discussing the ecomony.

Mr. Krugman, according to his short bio, joined The New York Times in 2000 as an Op-Ed columnist. He is distinguished professor in the Graduate Center Economics Ph.D. program and distinguished scholar at the Luxembourg Income Study Center at the City University of New York. In addition, he is professor emeritus at the Princeton School of Public and International Affairs.

He is, all at the same time, a distinguished professor and a distinguished scholar as well as a professor emeritus which should be good enough for anyone.

Mr. Krugman’s latest observations appear in the NYT Opinion piece, Who’s Afraid of the Consumer Price Index?

Like any good opinion piece on economics, Mr. Krugman uses all the standard terms like inflation expectations, Bureau of Labor Statistics, consumer prices, alternative formulation, immaculate disinflation, significant cooling off, job vacancies, higher unemployment and the ever popular, temporary phenomenon.

Entirely appropriate and expected use of language.

But unexpectedly Mr. Krugman also uses the terms If you still believed, I guess and But the truth is.

If you still believed.

I guess

But the truth is.

NOW that is a gutty enconomist.

Mr. Krugman wraps up his piece with this paragraph:

But the truth is that nobody knows for sure, and the fact that a hot economy is still producing heated inflation does nothing to settle the debate.

Mr. Krugman wraps up his piece with these paragraphs:

The good news, sort of, is that the Fed seems to know what it doesn’t know. It’s talking tough on inflation, as it must to retain credibility, but it’s also talking about looking at the “totality of the incoming data,” which means that it’s prepared to ease off if and when inflation is clearly coming down.

My guess is that this moment will come sooner than many think. But we’ll just have to wait and see.

But we’ll just have to wait and see.

But we’ll just have to wait and see?

I would like to refer Mr. Krugman to Chance the Gardener in the old movie, Being There.

Mr. Gardener said: As long as the roots are not severed, all is well. And all will be well in the garden. In the garden, growth has it seasons. First comes spring and summer, but then we have fall and winter. And then we get spring and summer again.”

In the movie, the President listens to this and says, “I admire your good, solid sense. That’s precisely what we lack on Capitol Hill.”

BTW, the movie Being There was released in 1979.

We’ll just have to wait and see.

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