"In a post yesterday, Krugman refers to my suggestion that it's mostly a case ofseptaphobia, or fear of the 70s. The idea here is that inflation really did run out of control in the 70s, and it really did take a massive recession engineered by Paul Volcker to rein it in. If that was one of your seminal experiences of the consequences of loose money, then it's no surprise that you fear inflation. But Steve Randy Waldman says this is "bass-ackwards":"
Scratches to Sketches