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It’s a thoughtful well written article by Krugman.
I don’t think anyone can predict where inflation is heading. The wise folks at the Fed sure didn’t get it right a few years back with “transient.” But as inflation goes, today’s is much less than in the 70s. I agree with Krugman that most folks perceive it as higher than it really is. Our standard of living in terms of quality of motor vehicles, TVs / entertainment, homes and ready access to information is so superior compared to the “good old days.” Makes price comparisons difficult or even misleading. (For sure, not all Americans are able to partake.)
I also believe that virtually all fiat / paper currencies depreciate over time. I think part of investing involves buying things that may hold their value as inflation progresses. Real estate, maybe some metals, stocks in good companies.
At $49 for the first year, the NYT is a bargain. Less than I pay for a good bottle of scotch. I also just purchased a 2 year digital subscription to Barron’s for about $150. (Yes, there are cheaper 1-year deals.) I think of these and other paid subscriptions as a contribution to a healthy free press. Not much different from contributing to PBS or a political candidate I agree with.
This most recent PK piece David links has excellent explanations of the strengths and weaknesses of the various inflation measures. Highly recommended ...
Comments
I don’t think anyone can predict where inflation is heading. The wise folks at the Fed sure didn’t get it right a few years back with “transient.” But as inflation goes, today’s is much less than in the 70s. I agree with Krugman that most folks perceive it as higher than it really is. Our standard of living in terms of quality of motor vehicles, TVs / entertainment, homes and ready access to information is so superior compared to the “good old days.” Makes price comparisons difficult or even misleading. (For sure, not all Americans are able to partake.)
I also believe that virtually all fiat / paper currencies depreciate over time. I think part of investing involves buying things that may hold their value as inflation progresses. Real estate, maybe some metals, stocks in good companies. At $49 for the first year, the NYT is a bargain. Less than I pay for a good bottle of scotch. I also just purchased a 2 year digital subscription to Barron’s for about $150. (Yes, there are cheaper 1-year deals.) I think of these and other paid subscriptions as a contribution to a healthy free press. Not much different from contributing to PBS or a political candidate I agree with.
Not everyone is happy about the good news on inflation
https://messaging-custom-newsletters.nytimes.com/dynamic/render?campaign_id=116&emc=edit_pk_20230919&first_send=0&instance_id=103135&nl=paul-krugman&paid_regi=1&productCode=PK&regi_id=22268089&segment_id=145155&te=1&uri=nyt://newsletter/0a7141ea-c986-5533-b8c6-89895f59043a&user_id=83d45440ead1d14c2a89a1e7221337d1