,
5 tweets,
2 min read
Read on Twitter
Moore isn't just a hack; he's stone-cold ignorant. If you do macroeconomics, you might say that you don't agree with the logic behind using core inflation. Having no idea why the Fed uses it is inexcusable 1/
The logic behind the core measure is very clear and has been explained many times over the years. Here's my version. Happily, we never did slide into Japan-style deflation, but the argument stands 2/ krugman.blogs.nytimes.com/2010/02/26/cor…
And the Fed's view that core inflation is a much better guide to underlying inflation pressures than the headline number including commodity prices has been overwhelmingly validated. Compare headline inflation with core since 2005: 3/ 
Headline inflation gave false alarms in 2008 and again in 2011-12; it would have been disastrous if the Fed had responded to those false alarms by raising rates (the ECB did in fact do that in 2011, with nasty results) 4/
So again, think about the fact that the right's favorite economist doesn't even know what that's all about – and thinks that "hundreds" of Fed economists should be fired because they have the "wrong model" 5/
