Steven Hanke Dismisses Krugman's Assertion
Johns Hopkins University applied economics professor Steven Hanke has strongly criticized fellow economist and Nobel laureate Paul Krugman's claim that inflation is a "global phenomenon." Hanke took to X (formerly Twitter) to express his disagreement with Krugman's latest op-ed article in the New York Times, calling it another example of disinformation from the esteemed economist.
Krugman Advocates for Bidenomics
In his article published on December 7th, Krugman argues in favor of Bidenomics, a term used to describe the economic policies of U.S. President Joe Biden. While he acknowledges that persuading conservatives may be difficult, Krugman believes that progressive U.S. citizens can still be convinced that the Biden administration has performed well in terms of the economy.
Krugman supports his argument by pointing out the increase in the labor productivity rate during the third quarter. He also mentions the significant reduction in the number of unfilled job openings, which he claims has now been largely resolved.
Hanke Challenges Krugman's Claims
However, Hanke dismisses Krugman's assertion that inflation is a global phenomenon. In a post on X dated December 9th, Hanke states that inflation is always and everywhere a local phenomenon, not a global one. He points out that countries like Switzerland, with well-managed central banks, maintain low and stable inflation rates. For instance, Switzerland experiences an inflation rate of 1.4% per year. Hanke also highlights China, the world's largest economy in terms of purchasing power parity (PPP), where inflation is only 0.2% per year.
Continued Disagreement Between Krugman and Hanke
This is not the first time that Hanke has rejected Krugman's arguments. In October, when Krugman declared victory in the United States' battle against inflation, Hanke expressed his disagreement with the Nobel laureate's viewpoint. Interestingly, when Hanke previously stated that the problem of inflation had been resolved in July, both Krugman and economist Mohamed El-Erian were reportedly uncertain about this claim.
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- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
- Fraud Advisory: Precious Metals Fraud
By: Terence Zimwara
Title: Johns Hopkins Economist Criticizes Paul Krugman's Claim on Global Inflation
Sourced From: news.bitcoin.com/economist-steve-hanke-blasts-nobel-laureate-paul-krugmans-global-phenomenon-inflation-remark/
Published Date: Mon, 11 Dec 2023 21:00:55 +0000