Blanchard is Still Wrong About Inflation

Let go of the Phillips curve

The American Economic Association annual shoulder rub concludes today. From the reporting, economists are now overwhelmingly sold on Isabel Schnabel’s thesis that the world economy has transitioned from “the Great Moderation” to “the Great Volatility”. The central problem, of course, is price stability.

Olivier Blanchard ignited quite a kerfuffle on Twi…