Krugman and Kapital

Paul Krugman recently wrote three very interesting posts. In other breaking news the sky is blue and dog bites man. He suggests that elite perceptions of economic *events* are very much influenced by the experience of the super rich.

He has been flirting with Marx for a while (Thomas Piketty seems to be a mutual friend who helped them break the ice).

we have hate inflation, because high inflation has been correlated with bad outcomes for the super rich and that many people perceive economic performance in the 80s as being much better than performance in the 70s (and even better than the really good performance between the inagurations of FDR Richard Nixon) because that was a great decade for the rich.

I suspect that he is over theorising. I commented at his blog, and commented much more fiercely at Kevin Drum’s (discretion is the better part of valor).