Nobel economist Paul Krugman says he's worried the Fed's war on inflation may trigger future shocks, including more banking chaos
The Federal Reserve's war on inflation doesn't have to cause severe economic pain – but there's a risk the central bank will trigger more shocks like the recent banking debacle, according to Paul Krugman.
"I'm in the camp that believes that bringing inflation down doesn't have to be very costly," the Nobel Prize-winning economist wrote in a"But I'm very worried about the problem of sticking the landing in the face of huge uncertainty about the current state of the economy, possible future shocks like debt default or more Covid dislocations, and the often delayed effects of policies designed to fight inflation," he added.
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