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Economist Steven Hanke Criticizes Paul Krugman’s View on Inflation as a Worldwide Issue
Steven Hanke, an applied economics professor at Johns Hopkins University, has expressed strong disagreement with the opinion of Paul Krugman, a Nobel Prize-winning economist, regarding the nature of inflation. Krugman posited that inflation is a global issue and insinuated that the economic management of the Biden administration is commendable, particularly in the eyes of progressive Americans.
Disagreement Over Inflation’s Nature
In a critique targeting Paul Krugman’s recent opinion piece in the New York Times, Steven Hanke, a distinguished professor at Johns Hopkins University, has voiced his objections. Hanke utilized X (previously known as Twitter) to dispute Krugman’s assertion that inflation is a global phenomenon, labeling such claims as misleading.
Krugman’s recent column focused on defending the economic strategies under President Joe Biden, coining the term “Bidenomics.” He conceded his inability to sway conservative opinion but remained optimistic about persuading progressive Americans about the administration’s economic successes.
Highlighting the U.S. economic performance under Biden, Krugman cited the increase in labor productivity in the third quarter and the reduction in the job openings gap. Furthermore, he emphasized the relative growth of workers’ earnings compared to the rate of inflation, countering criticisms of poor inflation management.
In contrast, Hanke’s December 9 post on X sharply contradicted Krugman’s assertions. He argued:
“Incorrect. Inflation is fundamentally a LOCAL phenomenon, not a GLOBAL one. In economies where the central bank effectively manages the money supply, inflation remains low and stable. Examples include Switzerland with a 1.4% yearly inflation rate and China, the world’s largest economy on a purchasing power parity basis, with a mere 0.2% annual inflation.”
Hanke Versus Krugman: Ongoing Dispute
This is not the first instance of Hanke challenging Krugman’s viewpoints. Previously, in October, when Krugman announced a perceived victory over inflation in the U.S., Hanke was quick to counter. Furthermore, when Hanke declared in July that the inflation issue had subsided, Krugman, alongside economist Mohamed El-Erian, expressed skepticism.
Share your opinions on this debate in the comments section.
Frequently Asked Questions (FAQs) about Inflation Debate
Who is Steven Hanke?
Steven Hanke is a professor of applied economics at Johns Hopkins University, known for his expertise in economic policy and criticism of other economists’ viewpoints.
What is Paul Krugman’s stance on inflation?
Paul Krugman, a Nobel laureate economist, argues that inflation is a global phenomenon and suggests that the economic policies under the Biden administration have been effective, particularly for progressive Americans.
What is the main point of disagreement between Hanke and Krugman?
The primary disagreement between Hanke and Krugman centers on the nature of inflation. Hanke challenges Krugman’s view that inflation is a global issue, asserting instead that it is a local phenomenon influenced by central bank policies.
How does Krugman defend the economic performance under the Biden administration?
Krugman defends the economic performance under President Biden by pointing to the rise in labor productivity, the reduction in the job openings gap, and the growth of workers’ earnings outpacing inflation.
Has Hanke previously disagreed with Krugman’s views on inflation?
Yes, this is not the first time Hanke has disagreed with Krugman’s views. In the past, Hanke has consistently countered Krugman’s optimistic assessments of inflation and economic policies in the United States.
More about Inflation Debate
- Steven Hanke’s Profile at Johns Hopkins University
- Paul Krugman’s New York Times Columns
- Overview of Bidenomics
- Analysis of U.S. Labor Productivity Rates
- Understanding Inflation and Central Bank Policies
- Historical Perspectives on Inflation Debates
- The Role of Economic Policy in Managing Inflation
- Comparative Analysis of Global Inflation Rates
4 comments
Both these guys are smart, but sometimes I think they just like to argue for the sake of it. Who really knows the truth about inflation anyway.
Krugman’s always been a bit controversial but gotta say, Hanke makes some good points about local vs global inflation.
Interesting article but not sure I agree with all of Hanke’s views, inflation is a complex beast and not just local in my opnion.
wow this debate is heating up, Hanke really doesn’t hold back against Krugman huh? Economics is never dull I guess!