Do We have an Inflation Problem? A discussion with Lord Mervyn King and Paul Krugman

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On September 10, 2021 at 1 p.m., the Griswold Center for Economic Policy Studies hosted a virtual discussion with Lord Mervyn King and Paul Krugman. Former New York Federal Reserve President Bill Dudley moderated the discussion.

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@lianehewitt2333 2 жыл бұрын

Terrific. Thank you for uploading!

@advocate1563 2 жыл бұрын

mervyn king excellent as ever.

@widehotep9257 2 жыл бұрын

Interesting to hear Paul Krugman talk about inflation. This is the same man who doesn't know how money is created and wrongly believes banks only loan out the deposits of savers!

@sunilkhamer 2 жыл бұрын

We do know that at some point of time printing money is not going to work and will lead to massive inflation. So you can't solve your problems just by printing money.

@widehotep9257 2 жыл бұрын

Over 95% of money is created by private banks issuing loans, not by central banks. Inflation, hyperinflation, and business cycles are all caused by private banks.

@bleacherz7503 2 жыл бұрын

Why can’t a single economist talk about the cost of low interest rates to savers and the poor

@Myndir 2 жыл бұрын

Low interest rates generally benefit the poor, who tend to be borrowers, and hurt savers, who tend to be rich.

@slovokia 2 жыл бұрын

@@Myndir So someone who is disabled and living as a renter on a fixed disability income and modest savings benefits from inflation?

@mrmc2465 2 жыл бұрын

@@Myndir absolutely clueless, the biggest borrowers are governments and large corporations, the poorest get pay day loans at 20% regardless of the underlying base rate

@slovokia 2 жыл бұрын

Don’t investors in long term nominal fixed income securities have an expected value for inflation in their minds?

@xenocampanoli815 2 жыл бұрын

Respectfully, there seems to be a complete obliviousness here to the gestalt shift in the minds of the public to the need for more local production and less fossil fuel inputs. This clearly implies more local money ownership, which I am anticipating can only be affected in the short run with something like a UBI. As such, this inflation and the other behaviors like withdrawal from the labor market are in fact vital market signals, Traditional large central players have kept the general constituency out by cultivating ignorance and holding their informational cards close to their chests generally. Part of the stimulus needed now is around information, and that needs to be a jungle of information, not simple New Deal Education injections. That means taxation on pizzas and pickup trucks while people get UBI money to spend on the local goods, along with the talked about injectsion to get infrastructure changes.

@rodpetrie1088 2 жыл бұрын

I found this discussion a little painful to follow. I suppose it epitomised the sort of discussion one might expect a group of academics to have about whatever subject. It was all a bit wishy washy really meanwhile inflation is sky rocketing and the man in the street is being destroyed. Listen, it's the job of Central Bankers to keep inflation in check and they have resolutely failed in that respect and appear unwilling to act with any haste to regain control. I am not an economist or any kind of banker, it does not take either to realise that an economy that has run on zero rates for a decade is not a healthy one. Central bankers have allowed debt to accumulate to such proportions that they now have no room to act because by doing so they would implode the Governments finances and create a depression. Surely the key point here is that CB's have led us down a path of no return, they did not consider the consequences or devise an escape plan. THERE IS NO PLAN B ! but what the heck lets have nice little theory discussion about it, sorry but where is the accountability here ?

@rodpetrie1088 2 жыл бұрын

@Wurst Zeit I couldn't disagree with anything you have said here Wurst, you obviously have a good understanding of the subject. As you correctly point out successive Governments have been running large budget deficits for years (cumulative national debt £3 trillion) and more recently found the keys to the printing press at the BoE (£900 billion) diluting M2 50% since 2010. Legislation needs to be introduced make it illegal for future Governments to exceed revenue raised through taxation by borrowing or printing more money. The problem with bringing inflation under control is the catastrophic pain it will inflict on society because the only real cure is to address negative real yield which you may well be aware is the difference between the inflation rate and the yield on 10 year Gilt (currently negative 7%). Further to this the BoE needs to unwind it's asset purchases carried out during QE in order to contract M2 and therefore restore the buying power of the currency. Unfortunately these measures involve acute economic pain that no sane politician or central banker will have the resolve to instigate, I fear the worst !!