I have in front of me a copy of yesterday’s Palm Beach Post that includes an article by Neil Irwin entitled “Bernanke Holds First News Conference” (I couldn’t find a link, and I don’t want to spend all day looking for one. Sorry). Bernanke, who has been hailed as an expert on the Milton Friedman-style monetarist approach to the study of depressions, is quoted as saying that high gas prices “make economic developments less favorable” and “they add to inflation.” And, “[B]y draining purchasing power from households, they are also bad for the economy.” The statement that high gas prices … Continue reading Does Bernanke Even Understand What Inflation Is?