Current Inflation Not Like 1970s: Nobel Laureate Romer

"Everybody expects inflation to come back down" --> the same ppl that were saying inflation was transitory more than 1 year ago.

I love how the graph displays average wage growing for lower income people with the label “Not adjusted for inflation”. This whole discussion is a moot point

It took about three years in the '70's (1974-1977) before the "experts" realized inflation WAS out of control and then another three years (1979-82) to tame it. History does NOT repeat but it DOES rhyme. In the 90's he had "real" wage growth due to rapid increases in "productivity" and virtually no tech outsourcing. Today we have declining productivity combined with "outsourcing".

I can't believe this guy is a Nobel laureate.

Yeah, he's right, it's not like the seventies at all because back then the US national debt wasn't over 30 TRILLION dollars!!! And rising rates could possibly send American into default. So yes, it's not like the seventies, it's much, much worse!!!

With professors like this guy, no wonder we're in the mess we are!

His "temporary" inflation is a year and a half now. And now we are at 8.6% back to normal again maybe 3-4 years. It's a long time.

It’s not like the 1970s. It’s going to be a record breaker. Numb nuts

"Everybody is expecting it to come back down." No, not everybody. There are many who expect it to be much worse than the 70s. And there is good reason to expect it to be much worse. In fact, if the CPI was calculated in the same way it was back in the 70s (which is what is necessary if one is comparing now and the 70s) it would already be much worse than the peak of 13% reached before Volcker cranked up interest rates to 20%.

What Prof. Romer suggested -- 4% inflation rate as the target -- would only work in a Harvard seminar, but not in the real world because whoever champions that would be voted out by the people. However, what could help achieving 4% inflation rate in a politically viable way is to lie about real inflation. But they are doing that already.

Rising asset prices (inflation) hurt low income the most. 6% wage growth is a joke compared to 20-25% increased housing costs. This guy should be embarrassed for spreading such non-sense. "If you're trying to buy a house, and houses are up 20% yoy, the inflation rate to you is 20%." -Michael Saylor

How is this guy a Nobel laureate? Everyone gets jobs no matter who you are, and higher wages for everyone but we are expecting inflation to go down after that?

The economist profession has lost all credibility on inflation forecasting. If they say inflation is going to fall, expect it to keep going. Economists are the new Cramer

Nobel laureate Paul Romer, a New York University professor, gives seven and a half minutes dissertation on how stupid a Nobel laureate can be. What we need is a Paul Volcker if we want to stop a hyper inflationary depression.

Who cares if income inequality is going down if everybody's situation is getting worse? See how it says that wages are growing faster for the bottom quartile, but those increases are not inflation-adjusted. Then you look at the inflation number and realize that's higher than their wage growth so in real dollars their wages are going down too. Moreover, the people in the bottom quartile spend all their money so they are not able to actually gain any wealth in either real or nominal terms. I guess we can all celebrate everybody getting poorer together though lol.

This guy is the poster for an out of touch ivy tower type.

This is the kind of people who are not held accountable for what they say. Mambo jambo.

The Fed was saying inflation was temporary back in the mid 70's too. The real inflation rate is in double digits. I'd say that inflation is out of control but then again I don't have Nobel Laureate money.

Ok, I listened to the whole interview. This guy is clearly here for politics and not facts. Glad I didn't go to NYU.

Don’t worry, the ice age will only be a temporary thing.