I was referring to the date of publication. I will give a brief critique on Professor Krugman's main prediction, just don't ask me to do it too often.
To be fair to Professor Krugman I will first acknowledge that it is always easy to judge the prediction of others rather than to make the prediction yourself, especially with the benefit of hindsight.
Now after my polite acknowledgement:
"The world is headed for another decade of low inflation and even lower interest rates, says Nobel-winning economist Paul Krugman."
I found this to be a big call by Professor Krugman as it is a broad, sweeping and generalized assumption based on the predication of central banking behavior and government fiscal policy; which stretches over a significant temporal scale in time.
So now we should ascertain if his prediction if still valid:
Looking at the United States there has been a steady rise in inflation since July 2016, I have used seasonally adjusted CPI for all items. See below:
As we know, a primary objective of a central bank is to contain inflation within the generally established target range of 2-3%. As I am sure we are all aware the Federal Reserve has raised the Federal Funds Rate numerous times last year, essentially tracking the inflationary rise which is evident in the above chart. See below for Federal Funds Rate movement:
The concern the Federal Reserve may have now is with inflation running away due to Trump's tax cut package which will inevitably provide a significant stimulus to the US economy. The Federal Reserve has forecast another 3 Federal Funds Rate rises for 2018.
So this bold prediction by Professor Krugman is now invalid. In saying this we are never correct 100% of the time, so perhaps the good professor was just having a bad day.
