re: #31 Mike Lamb

That issue was addressed a bit on, I believe, NPR, when discussing anticipated rate hikes. The interview subject basically said that even though the Feds would likely raise rates, we weren’t seeing much empirical evidence that said inflation was a concern. Seemed to imply that the notion of an “overheated” economy was a little like the Laffer Curve in that yes, very low employment leading to increased wages leading to inflation is true in theory, but we have no idea what the trigger point is for determining when action to slow things down is appropriate.

It’s what happens when your theory of economics is too limited. For example, Conservative economists JUST KNEW that Obama’s stimulus bill, and Quantitative Easing would cause massive inflation, because that’s what their economic theory said. They couldn’t understand why it didn’t. But I was following Krugman, whose predictions were right on the money.