Paul Krugman: More On Deficit Limits

amie Galbraith responded to this post in comments; what he said, and my counter-response, below the fold:

First, Jamie:

Paul’s argument is that *infinite* inflation is a theoretical possibility. Well, yes. It happened in Germany in 1923.

There is no reason to cut Social Security benefits or Medicare now, with effect in the future, in order to avoid the theoretical possibility that some combination of policies might at some time in the future give us the economic conditions of post World War I Germany.