The Fed printed $5 trillion and helicopter dropped it on everybody...nobody could have seen this inflation(expansion of currency supply) coming?!? And this guy is a Nobel prize economist! WTF

Isn’t it great when someone admits they were wrong. That’s how we learn.

If you're looking for the first debate, search for A Conversation with Lawrence H. Summers and Paul Krugman uploaded Feb 12, 2021 on the same channel.

Is there a written transcript? Forgive me, when was the first debate?

You need to have Peter Schiff debate Paul Krugman. It would be a blood bath.

All I hear is Krugman hiding behind his imperfect models. The dude talks a lot but says very little

What I would like to understand is the relationship between money creation, credit creation, interest rates and inflation. Private banks and central banks are allowed to convert debt (credit) into money. We have gone through a period of extensive credit creation and money creation - predominantly by the Federal government borrowing (to pay stimulus payments) and the Fed engaging in quantitative easing. Had the Fed not expanded its balance sheet interest rates would have risen. Does the current structure of interest rates accurately reflect the underlying time preferences of private actors?

Very good talk

Don’t you just love it when people who never were right on anything are telling you how the world works…?

I always enjoy listening to Paul and Larry. But let's face it you do need some training in basic macro to follow the thoughts they have in the back of their mind!

I will raise a simple question: if a respected economist gets a prediction dead wrong, when other economists and even laypeople found it logical to predict the opposite, does that say something about the respected economist? How many such prediction can the respected economist get wrong before they are discredited?

Ty

Imagine if this is what political debates looked like.

It's laughable that Paul Krugman starts by acknowledging his "mistake" before listing all the reasons why he was right!

Summers really wants to show krugman that he agrees a lot with him. I think he wants to make friends again.

Why would the FED buy MBS? They might as well buy stocks directly.

When covid restrictions end in combination with increased money printing and the Feds reluctance to increase rates the economy in America will expand rapidly leading to very high painful inflation

Krugman is really good at admitting when he's wrong. That's because he gets a lot of practice.

None of what is being discussed here seems to address anything on the supply side. I don't get why there is so much focus on demand when demand is not likely to increase and is only marginally above normal.

Does anyone in this "debate" actually say anything useful? Who cares who guessed right and who didn't? I'm struggling to hear any kind of explanatory framework that even holds water.

Does the average person really understand how bad "supply chain issues" are??

Did this Paul Krugman ever correctly predict something in macroeconomic?

Imagine we used to have Milton Friedman and now we have these 2

Krugman thinks CPI measures inflation. It way underestimates it. But he sneers at people who say it doesn’t measure inflation accurately

Excellent discussion that give also lessons that progress is supported by arguments and not serving the fear of political cost .

This quote is often attacked as being taken out of context but it speaks truth-to-power in terms of the Keynesian belief that you can create artificial demand, without any unintended consequences...but in 2002, Krugman said "To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble. Oftentimes the 'experts' can't predict where the money (or inflation) heads. Then they try to offset it by creating artificial demand, or some intellectual financial tap dance between market sectors. F.A. Hayek also referred to this as the "Knowledge Problem," that people can't simply know or even fix the complexities in the economy because there is no way you'd have all the knowledge to make the correct decision. The counter to this argument, would be "at least they tried." There is no mentioning the importance of saving capital, but only believing that the Fed can pull the interest rate levers, or print money. Just think about how shocked the financial gurus are every time a bubble bursts. Not only are they shocked and didn't see it coming, but guess what? They know how to fix it this time. Ego and hubris come to mind... When inflation hits, or money is printed and lent to financial institutions it's the people with power who get access to it first. This isn't on accident. So if you are a serious leftist, I'd ask you to at least consider these thoughts.

Two old guys who are still wrong!

Krugman “Why I was wrong” Should be the title of his autobiography.

Keynsian economics is taxation without representation and always leads unsustainable malinvestment. Even worse, it also serves to transfer wealth from the workers to the assets that are owned by the top 1%, while also helping the government tax us illegal by inflating their debt away.

Hocus Pocus? raise rates! how will the massive debt be serviced?

Would have liked to see Mark Blythe in on this discussion.

Easy to be wrong on depth and duration of inflation because when it takes hold it is often as a result of consumer psychology (forward expectations). Covid effect is also complicating things - no one has any idea what new normal looks like yet.

Someone in Larry's house should stop vacuuming. Negative real rates for savers. Thanks

Paul, you were exemplar in your honesty - THANKS! Also thank you for going back and helping us understand your thought process.

Excellent discussion. But, did I miss the part where someone congratulated the FED for avoiding a depression which would certainly have occurred? Sunday morning quarterbacking?

It’s a k economy - we borrowed from tomorrow to transfer to the top 1% today. Banks were in in the gig. Stock buy backs should hv been taxed out of existence during a $7 trillion give away

From 52:25 (Weimar Republic), Summers likes so much every word Krugman says that he seems to be enjoying tripping at a chill rave by nodding on time. I hope pictures of the two fishing on a boat will leak someday, if they do I'll keep one by my pillow.

And not a single actual real economist on stage that can properly define inflation...Rising prices are an effect of inflation.

So cut rates further and more QE it is then.

a man who is always wrong admits he is wrong...does that mean he's right?

Krugman will be forgotten in history. Let's see how long music chairs can go on for

Larry was right a year ago about inflation, but as I see it, for the wrong reason, which, IMO, is the same as being wrong. He thought the $1.9B American Rescue Plan would put too much money into the economy, which, of course, it did - But only because of the supply chain snafu. As I recall, neither Larry nor Paul foresaw that huge problem. If there had been enough cars, chips, harbor capacity, etc., it is most unlikely we would be having such high inflation today.

Paul, you're wrong because you are not an Austrian economist and you are not defining inflation as the expansion of the money supply, so you talk supply chain and unemployment yada yada and miss the whole point about $ present in the system. Where do you think the money comes from that people are paying more for this stuff?

a neigbors boy told us he is afraid to get a job because he's afraid to ride the subway or bus...

Lawrence summers? Goldman Sachs? In charge during 08 recession. Why is anyone still taking his economic advice ?

Krugman's hatred for right clouds his objective thinking. I stopped valuing Nobel prize in economics after reading Paul Krugman.

Point of fact, they don't understand the economy.

Let me look at my crystal ball....🔮

Two men who are out of touch with reality. One a bureaucrat insider. The other denied the disruptive future of the internet.

Well at fourteen minutes, I said, "Well that ain't going to happen. After which I ended this program. Bye.

I think the real issue is not related to any fiscal or monetary policy but more to human nature: Greed. The fiscal or easy monetary policy was intended to support the economy and to increase the productivity : all well intended but not how in reality it works out: Free money that was received did no go to intended purpose: paying off debt, rents, livelihood or education but instead went to consumer goods, crypto or the stock market (gambling), easy monetary policies did not result into a more productive economy but more speculative one like (Spac. Tesla, virgin galactic) and low interest rate result that everybody can buy a second or a third house while not selling the first house (housing bubble)

Why did God create economists? To make the weatherman look good.

Paul isn't in same.level.as SummerS. He gets whacked everything he debates someone.of intelligence

Oh boy, this should be completely absurd. These people shouldn’t be allowed to speak on anything anymore!

Glad Krugman mentions housing. How about restrict REITS and investors from purchasing up multiple homes. Their greed is suppressing the middle class and drastically effecting supply.

As if economists have ever fixed any problem before...😀. All they do is talk about it. At the end of the day...no answers, just a debate.

Its these Nobel laureates who screw countries through their theories. The FED should never have employment levels as a decisive factor. This will always lead to over heating and inflation after a few years. Keep the $ strong at a minimum of 3% yield, balance the budget so interest rates don't tempt you to borrow more. Prolonged low interest rates always results in a downturn where the savvy investors still gain by way of financial instruments that let them hedge leaving the regular 401K high and dry. No FED chief and Treasury secretary should have anything to do with Wall street that likes 0% interest rates.

Firms set prices. We have generational profit margins for the conglomerates. Antitrust has not been meaningfully enforced for about 1,000 years, give or take; so no price competition there. Supply chain disruptions are real - but do not explain record profits. Matt Stoller did a good back of the envelope calculation that about 40% of the inflation is supply chain disruption, the other 60% is price gouging. The former gives political cover to the latter. Raising interest rates will neither enforce antitrust nor repair broken supply chains. It can however depress debt-fueled consumer spending. It can also put a lot of zombie firms on the auction block. And of course, increase revenue for the banks. As for the "controversies" in the economics profession regarding inflation, I think the writer Thomas Frank said it best, if rather politely, "The economics profession is a cartel invented to defend error."

Investors chagne the world not stupid economist, other than producing rosy prediction & neat looking theory, btw not all economist are the same (Keynes & Shiller)

There is no audio with this video

Most repeated line in this debate is "Paul and I agree"

Just because there is inflation we cannot simply say that "because we inject too much money into the market so there is inflation". The root cause is obviously supply chain issue at this point. Making the argument to force Fed to increase rate aggressively (7 rate hikes) just to cure the symptom will almost certainly cause major recession to our economy.

When Thugman predicted a permanent global economic collapse in 2016 was it to start in 2016???

Poor Krugman. He just revealed how in over his head he is. His opening statements he lamented having to think about logistics when it comes to the economy and how it was burdensome for him to learn about it. We really made a mistake following these guys. They ruined us and now they are in panic mode trying to explain away their failures. Thanks for the depression guys. It will probably be for the rest of our lives unless we can unchain people like you these from our policy and academia centers.

Voltaire talked about strangling the aristocrats with the guts of the priests. I thought Krugman was on the road to enlightenment. The economy is of human design by human design and it is destroying us. This is all hocus pocus and abracadabra.

Professors Krugman and Sammer. Was far long my respected moral and academics.. Which I mistaken makes thinking. I know very good how they works.. This is the reason the situation are far worst.. For long now from 2008.. They destroyed life of people's don't knows and are out of there town.. My *wish*for those who play not fairy.. Just because of toilet paper stimulus.. It's Your next generation to pay in same way.. Maybe then they will understanding the demand they did it.. I am totally desagree. With what ever concluded about economy or inflation.. Foolness of people like Me* gives the speculation crimes.. Like many others long time now.. Boconi university its been one of those. When unexperts academic which have title.? Than world go's like this.. There have NO inflation! But revolted for unfairness years... Thx we all makes mistakes in our conclusions..

Paul Krugmans voice sounds so shaky, like he knows he’s spinning some serious bullshit and doesn’t even believe what he’s saying.

Krugman should have come on just to say he was wrong then turned his camera off never to be heard from again. This Super-Keynesian hasn't been right for 20 years

The PPP came from me - so let me address it first - it is not inflationary to replace lost revenue for a business from a mandated lock-down, all else being equal. M1 increases (and continuing increases above 6% - right now) over replacement of GDP loss was the cause of the price inflation we are seeing (Summers and Henke got that right). Those increases have about a 12-24 month lag - so we are going to see inflation at elevated levels well into 2024. The inflationary impact of that increase in the money supply was made much worse by its magnification in the speculative markets (housing, bonds and equities) multiplying the asset bubbles we will see pop this year. That horrible situation will become intolerable when the recession we are already in becomes apparent. Stagflation means we cannot grow into a lower inflation level. That leaves a contraction in money (increased interest rates) - which will crash the economy further. We must stop our markets from being a speculation casino; stop our government from borrowing us into an unsustainable oblivion; stop our political system from being a life-time job for those willing to trade greed and corruption for power; and stop our currency from becoming a manipulated instrument for our plutocratic overlords. Wage inflation is a different beast - the combo of Trump antagonism and policies toward the bottom of the labor pool coupled with the loss of jobs for those undocumented workers caused them to leave our economy and return home (in the millions). That is why there remains both a shortage of labor for those jobs and a high rate of attrition for the workers who take them (they suck and don't pay well).

Pretty sure 90% of those commenting haven't watched the video or don't understand what's going on in the economy right now lmao

Heil Benny Hill!!

Despite Paul Krugman's "knowledge" of metrics and percentages, what makes this discussion hard to stomach is his core belief that governments MUST orchestrate and plan economies and that without its guidance, we would descend into chaos.

Nice Coke Zero.

Listening to Phd's pontificate on the best way to extend an irredeemable unsustainable debt based clown money ponzi scheme rigged 7 ways to Sunday is quite entertaining.

Wasn’t Paul Kruegman the guy who said the internet was a “fad?”🤣🤣🤣Should we believe him when he says “bitcoin is a fad” as well??🤭🙊😝Paul, get a real job! Stop living in a world of theory💯🔥

Austrian economics is winning. The end of socialized economics is coming in a collapse. Government should be out of the economy

reminds me a bit of doctor who. 100% academic bubble man vs 50% academic bubble man. if i had to choose id go with 50% bubble man.

If you want to understand economics, you listen to Peter Schiff, not keynesian fools.

Krugman looks intimidated. Summers appears very dominant and talks like a prophet. He was interrupting the shy Brunnemeier.

These debates between famous economists are not very interesting. Too much posturing. Too many assertive views. Not very intellectually curios

Climate change effects have also contributed to shortages and disruptions of lumber and other goods, driving up prices. This will of course only get worse in the coming years.

Who is team Krugman here? I hoping for a clean fair match. Summers to bring the heat but Krugman will edge it.

Please retire and never speak again Paul Krugman

Krugman is a joke

I don't know what to say. It is kind of obvious the economy doesn't work. If it worked would everybody just want to end the human journey abruptly? There is only one existential problem climate change.

A lot has been said about supply chain problem and the pandemic as causes of the high inflation. I have yet to hear anything about the trade war with China started by Trump (trade wars are easy to win) which is still in effect under the Biden administration. Surely, the billions and billions in tariffs imposed by the US and being passed on directly to US consumers have an immerse impact on inflation.

The curved certification secondly fail because crowd concretely wipe modulo a expensive form. handsome, fluttering sky

All respect, K was never wrong since he always knew inflation was a worthwhile tradeoff. Especially given that attempts to be too tailored risked any effort being hijacked by ideologies. . However, he is quite guilty of not standing up to those threats, since now that inflation's here he's ceded ground to blowhards like Summers!! A natural disaster that's also nationwide requires all science to admit people have to come first, so again, there's the error!!

Just buy bitcoin

Has Krugman ever been right about anything? “Socialist” and “economist” are mutually exclusive terms.

Complete waste of time listening to these guys

Krugman: I should start by acknowledging that, when we had the first part of the discussion on inflation last year, I was wrong. I underestimated inflation. What?!?! Krugman's predictions proved to be utterly alien to the way things turned out in reality? No way! Not again! Stunning! At some point, one would think, Krugman would ditch his wishful approach to economics in favor of one more compatible with reality--if not out of shame or embarrassment (by now it's obvious to all that the man persists insusceptible to shame and embarrassment), then sheerly from the weariness that must follow eating so much crow time after time.

i do not like krugman

The last thing you should ever do is listen to two jews "debating" economics.

I like milton and hayek, these clowns are woke, care more about covid, climate change and stabilization theory of John Maynard Keynes, monetary policy. Larry is reading off a computer screen, what a champ, I wonder if he wrote what he is reading. Both should retire.