The Supply Chain Story of Inflation

Krugman is right for the wrong reasons. Even the German hyperinflation after World War one was transitory went away sooner or later. It's a completely what we've seen is does not conform to that supply shock don't worry about it relative price story. In the 70s, the Fed would periodically raise rates in response to inflation and then boom, something would happen like a war in October 1973, or the Iranian Revolution in 79. And so these different worlds of geopolitics economics and history there interact, they interact in important ways.