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Important notice for Spud

today’s rapidly falling inflation is insufficient to prove that it was always going to fade by itself. What matters is whether it would be even higher now had central banks not tightened monetary policy” –

There is, of course, a joy to Spud’s view here. Standard analysis says that when inflation arrives, do this. So, inflation arrived, they did this, inflation slowed. Spud takes this as proof absolute that doing this was not necessary. In fact, Spud has argued himself into the corner of insisting that the standard view must be wrong because it worked.

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