The Poisoned Kool-Aid of Keynesian Economics

From today’s Open Europe news summary:

Annual inflation in Germany picked up in April but by less than economists had expected, fanning concerns that inflation in the eurozone has fallen dangerously low and putting pressure on the European Central Bank to respond with interest-rate cuts or asset purchases.

We economists of a certain age remember when low inflation, preferably zero inflation or even falling prices, would be celebrated, as it should be.  Lower prices benefit all citizens, improving their standard of living without the need for a rise in wages.  Inflation benefits only desperate debtors, mainly governments, who desire to pay off debts with debased money.  The public is being bombarded by a sycophantic media that has drunk the poisoned Kool-Aid of Keynesian economics.  Patrick Barron

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