Nobel Prize-winning economist Paul Krugman and gold advocate Peter Schiff are in disagreement over inflation. Krugman believes that “the inflation bump is over.” However, Schiff argues that Krugman didn’t even foresee the inflation bump, emphasizing that the Nobel laureate’s view on inflation should be disregarded. Schiff explained that “all indicators point to a reacceleration of inflation.”
Is Inflation Bump Over? Paul Krugman, Peter Schiff Weigh In
Nobel laureate Paul Krugman and gold advocate Peter Schiff have clashed over their views on the current state of inflation. Krugman won the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2008 for his analysis of trade patterns and location of economic activity. Schiff is the chief economist and global strategist at Euro Pacific Asset Management. He is also the chairman of Schiffgold.com.
Krugman described on social media platform X on Thursday that the Fed’s latest Beige Book provides soft evidence on inflation, noting that “prices increased at a modest pace.” He pointed out that this is similar to the statement from January 2020, which indicated that “prices continued to rise at a modest pace.” The Nobel laureate concluded that the “inflation bump is over.”
On Sunday, Schiff slammed Krugman’s statement. The gold advocate explained that since Krugman failed to anticipate this so-called “bump,” his views on inflation should be ignored. He noted that he would have conveyed his view to Krugman directly but the Nobel laureate had disabled comments on his post.
Schiff has consistently warned about the U.S. economy and inflation. On Thursday, he wrote on X: “Investors and the Fed continue to ignore the obvious. The U.S. economy is weakening just as inflation is strengthening.” On Friday, he criticized Fed policies, warning: “Once again the Fed is wrong. Rate cuts ensure inflation will rise into the double digits.”
In another X post, Schiff noted, “The Chicago PMI ‘unexpectedly’ crashed to 35.4 in May, its lowest level in four years, when the economy was crippled by Covid lockdowns,” cautioning:
This not only indicates the U.S. economy is already in recession, but stagflation, as all indicators point to a reacceleration of inflation.
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