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Scott Sumner


Ham Hockers
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My favorite part:

 

"My generation, call it Generation Inflation, came of age in the 1970s, and the lesson was we need to be eternally vigilant of inflation. My generation—I'm the same age as Bernanke and Krugman, and others — a lot of people of that age became in charge of central banks and became too contractionary in recent years.

 

My prediction is that the generation that came of age in the 2000s will be Generation Bubble. They're also going to learn the wrong lesson. They're going to think bubbles are what it's all about because of the tech and housing bubbles. I don't know if young people know this but before these two bubbles they weren't really a big issue in economics. My fear is central banks will devote too much attention toward trying to stabilize asset prices and prevent bubbles. And in doing so, they'll lose sight of the business cycle."

 

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