[lbo-talk] Krugman: you can't have a wage/price spiral w/o wages

[Julio Huato]

In Latin America in the 1980s, real wages always lagged behind -- yet
there was a hyper-inflationary spiral.  Loose monetary policies didn't
result from an attempt to shore up the real wage.  Workers were on the
defensive. Can that type of scenario (mutatis mutandis) be excluded in
the U.S. case?  The public finances can get out of hand (are out of
hand already?) as a result of tax cuts for the hyper-rich and military
expenditures.  So monetary policy may have to relent and accommodate
for that with an inflationary tax.  Why not?

Julio