I have my doubts about the apparent decline in recent months. It’s being driven not by events in Japan but by the taper scare, which drove up US rates. There is a question about why that rise in US rates didn’t produce a lot more yen depreciation, but something seems off here.Sharing Nobel Honors, and Agreeing to Disagree by Robert J. Shiller
The main point, however, is that this measure does suggest a substantial rise in expected inflation since Abenomics began, which is good news.
In Fed and Out, Many Now Think Inflation Helps by Binyamin Appelbaum
Faster Inflation Would Help…Really! by Jared Bernstein
Bill de Blasio for Mayor by the NYTimes Editorial Board
Election is in 10 days?
Positive Outlook: Abenomics is succeeding. Obamacare will succeed. Republicans will lose House next year. Yellen. Economy should pick up even if inflation is below target.
The Economics of Rip Van Winkle by Krugman
Binyamin Applebaum’s piece on the growing acknowledgment that moderate inflation can help, especially under current circumstances. But I can’t help thinking, only now they notice? I mean, this was all worked out and carefully explained fifteen years ago.
Oh, and the hard thing now is how you get inflation when we’re already at the zero lower bound. You really want this tied to expansionary fiscal policy, not austerity.
Still, any intellectual forward motion is welcome.