Paul Krugman (the red line in the graph is the CPI):
Free-Floating Inflation Hysteria: Brad DeLong has some fun with Senator Pat Roberts, who has gone from praising Janet Yellen in August to denouncing her as a dangerous inflationist now. So the senator is willing to say whatever the Tea Party wants him to say; big surprise.
What remains notable, however, is just what all Republicans are obliged to say: Ron Paul monetary theory has become obligatory:
Vice Chair Yellen will continue the destructive and inflationary policy of pouring billions of newly printed money every month into our economy, and artificially holding interest rates to near zero. This policy has been in place far too long.
So, the Fed began rapidly expanding its balance sheet when Lehman fell — more than five years ago. Here’s the result of that “destructive and inflationary” policy so far:
It’s not often that you see an economic theory fail so utterly and completely. Yet that theory’s grip on the GOP has only strengthened as its failure becomes ever more undeniable. ...