Answering Krugman

Paul Krugman in a recent blog post:

“If inflation is a case of too much money chasing too few goods, why aren’t slumps associated with accelerating rather than decelerating inflation, as the supply of goods falls?”

HA in this blog post:

“UK Inflation CPI Hits 3.7%, Higher than Zimbabwe, Britain Sleep Walking towards Wage Price Spiral“

while…

“UK economy sees shock 0.5% contraction in Q4“

As always, thanks for the insights PK, they’re a great yardstick in how NOT to interpret the actual world.