Not surprisingly, Dr. Inflation Himself, Paul Krugman, heartily approves. He writes:
She’s open-minded, a good counterweight to the inflation hawks who think that any day now we’ll be partying like it’s 1979.Yep. That is what we need, a good, "open-minded" inflationist, a monetary crank. For all of her "distinguished" career, any economist who advocates inflation as a way to bring a real recovery is promoting something akin to Harry Potter Science.
By the way, Krugman and Yellen forget that by wringing out our high inflation rates of the late 1970s and early 1980s, former Fed President Paul Volcker promoted a policy that really worked, as it took the malinvestments that our economy had piled up, trashed them, and then gave us a real recovery. Unfortunately, the Bernanke-Yellen Tag Team promises more of the same failed policies that are putting our economic future in permanent jeopardy.
But never to worry. After the economy continues its implosion, I'm sure that Krugman will find a way to blame it on everyone but himself and the policies he has championed.