Subject: Re: Krugman on the Fed
Janet Yellen: “transitory inflation”

I dunno, that was correct, in the end. The transit just lasted a bit longer than they expected : )

I agree, but the common perception was “a few months”, not “a few years.” On such misunderstandings elections are won and lost.

That said, I’ve almost never seen nor read of an inflation bump with disappeared quickly. Once the increases get baked in across the full economy they tend not to go away. A single instance can rise or fall (eggs, oil) but if you have a global, common bump, it’s devilishly hard to get it all back into the same 10 ounce can.