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Krugman Dismisses 1970s-Style Inflation, With Faith in Fed

  • Nobel laureate says Fed not constrained by bond-market worries
  • Past inflation crisis came after years of ‘screwing things up’
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WATCH: Paul Krugman doesn't think inflation will get out of control again like it did in the 1970's.Source: Bloomberg)
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Nobel Laureate economist Paul Krugman rejected the threat of inflation getting out of control -- like it did in the 1970s -- as a result of President Joe Biden’s $1.9 trillion pandemic-relief bill.

“It took really more than a decade of screwing things up -- year after year -- to get to that pass, and I don’t think we’re going to do that again,” Krugman said of the inflation scourge of the 1970s to early 1980s. He spoke in an interview with David Westin for Bloomberg Television’s “Wall Street Week” to be broadcast Friday.