However, for core inflation to be a good basis for forecasting headline inflation, the variations in the prices of agricultural and energy products have to be temporary, and should on average not differ from other prices.Smaghi forstår ikke forskellen mellem et højt prisniveau og en forøgelse i prisniveauet - det sidste er inflation, det første ikke. Amerikaneren Brad DeLong giver kronikken den påtale, den burde få i Europa.
Core inflation is a good forecaster of future inflation as long as variations in the inflation rate of agricultural and energy products are temporary.Men fra den finanspolitisk mest magtfulde mand i Europa.
If agricultural and energy prices jump and stay at their new levels--which is what is happening--then no problem. It's only if agricultural and energy prices diverge from other prices and the proportional divergence keeps growing and growing and growing--which it isn't.
Ups: Forvekslede Smaghi med Draghi.