In the same spirit as Scott Sumner’s “if we eventually get high inflation, it will probably be due to tight money over the past few years,” I must also call the referee’s attention to this throwaway line from Krugman. After reminding readers that the Obama stimulus was in no way a “test” of actual Keynesian remedies, Krugman writes:
The other part of the story is the troubles of the euro area debtors. Never mind that these have nothing to do with stimulus spending, and that Spain and Ireland were actually fiscal role models before the crisis; this too is spun as somehow anti-Keynesian, rather than a reflection of the disastrous effects of imposing a nouveau gold-standard regime.
I mean really guys, c’mon: How in the world can you have a reasonable debate with your hard-money critics, if now a fiat currency that was explicitly designed from Day One by technocrats and that never had a link to commodity money is being used to discredit the gold standard? Give us a break.