In a recent X platform post, Paul Krugman shared his thoughts on the latest U.S. economic data, particularly on inflation. Krugman, born on February 28, 1953, won the Nobel Memorial Prize in Economic Sciences in 2008 for his impressive work in international economics.
Krugman is known for his work in the development of the “new trade theory” and “new economic geography,” as well as his liberal viewpoints in his New York Times columns. He has authored over 20 books, and his textbooks are widely used in universities. Krugman has recently discussed the persisting U.S. inflation rate, providing some recent contextualized figures.
These figures include the Core Consumer Price Index (CPI) at 3.9% over the last 12 months, with a slight decrease to 3.2% over the last six months. Excluding shelter costs, it stands at 1.6% over the last six months. What do these numbers mean, according to Krugman?
Krugman concluded that “inflation has been defeated,” suggesting that recent, higher rates of inflation in the U.S. are under control and are expected to normalize.
Hot Take
The implications of the “defeated” U.S. inflation for risk assets such as cryptocurrencies and stocks, as a potential pivot in the Federal Reserve’s monetary policy and likely impact on risk assets, and the overall market sentiment.
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