Paul Krugman: A Frenzy Over the "Female Dollar"

I've spent five years and more watching the inflationphobes, who weren't particularly sensible to begin with, descend into shrill, unholy madness.

They could have reacted to the failure of their predictions — the continued absence of the runaway inflation that they insisted was just around the corner — by stepping back and reconsidering both their model and their recommendations. But no. At best, there has been a proliferation of new reasons to raise interest rates in a depressed economy, with nary an acknowledgment that previous predictions were dead wrong. At worst, there are the new conspiracy theories — we actually have double-digit inflation, but the Bureau of Labor Statistics is spiriting the evidence away in its black helicopters and burying it in Area 51.