This Age of Derp
By Paul Krugman
I gather that some readers were puzzled by my use of the term derp with regard to peddlers of inflation paranoia, even though Ive used it quite a lot. So maybe its time to revisit the concept; among other things, once you understand the problem of derpitude, you understand why I write the way I do (and why the Asnesses of this world whine so much.)
Josh Barro brought derp into economic discussion, and many of us immediately realized that this was a term wed been needing all along. As Noah Smith explained, what it means at least in this context is a determined belief in some economic doctrine that is completely unmovable by evidence. And theres a lot of that going around.
The inflation controversy is a prime example. If you came into the global financial crisis believing that a large expansion of the Federal Reserves balance sheet must lead to terrible inflation, what you have in fact encountered is this:
Ive indicated the date of the debasement letter for reference.
So how do you respond? We all get things wrong, and if were not engaged in derp, we learn from the experience. But if youre doing derp, you insist that you were right, and continue to fulminate against money-printing exactly as you did before.
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