Krugman's Fed Defense Cashes In On Inflation Confusion
"Behold Inflation!"
With an airy wave of his hand, the master illusionist directs the crowd’s attention to prices, especially consumer prices. “Keep your eyes locked on consumer prices. If they go up,“ he practically whispers to the spellbound people sitting on the edges of their seats, “then you know you have trouble. Trouble in the monetary system. Trouble starts with T, and that rhymes with P and that stands for printing money!” (with due respect to Harold Hill from The Music Man.)
With an airy wave of his hand, the master illusionist directs the crowd’s attention to prices, especially consumer prices. “Keep your eyes locked on consumer prices. If they go up,“ he practically whispers to the spellbound people sitting on the edges of their seats, “then you know you have trouble. Trouble in the monetary system. Trouble starts with T, and that rhymes with P and that stands for printing money!” (with due respect to Harold Hill from The Music Man.)
Yes, but everything else has moved, there is the big drop in purchasing power from increasing unemployed.
Floods of cheap money -> over investment -> bias to capital instead of labor -> cheap goods but fewer customers -> no net benefit to investors
No net benefit to anybody except the usual cronies but lower or no incomes to those who sell labor.