Killer slugs in Denmark

Justin, hope your having a great trip, and looking forward to hearing reports from there on how the Dutch view our economy and everything that is going on. 'oh the Americans and their mortgage crisis, hahaha'

But in the meantime, love to hear your thoughts on Ben Stein's article in the NY Times:

http://www.nytimes.com/2007/09/23/business/23every.html

Hej

I think the crucial line in Stein's column is "anyone who would have guessed that we could have run federal budget deficits the size of those since 2001 without major inflation would have failed any basic macroeconomics final exam in 1966." Because Stein doesn't seem to be aware of a single advance in economic knowledge since 1966.

He's right that nobody really knows if the Fed's rate cut will cause inflation--truly reliable prediction remains an impossible dream in macroeconomics. But there are all sorts of reasonable explanations for the phenomena he describes.