Krugman has been right about economic outcomes in the past, such as the idea that inflation would not run rampant over the past 10 years as many gold enthusiasts feared.
It is ironic to me, however, for him to say what he's saying about cryptocurrency -especially about it's value and backing- when he himself advocated creating a $1 Trillion dollar coin to solve some of the US monetary issues. Which probably would have worked. Who knows.
But how is minting a $1 Trillion dollar coin struck from platinum better than creating a digital, hardened currency like Bitcoin?
https://krugman.blogs.nytimes.com/2013/01/07/be-ready-to-mint-that-coin/
Well inflation is controlled artificially, is it not? Despite how much money is printed, they keep it around 3% per year...
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I wouldn't say it is artificially controlled, just that it is controlled, and that is on purpose.
https://en.m.wikipedia.org/wiki/Inflation
That it is controlled also doesn't mean that the inflation rate always acts the way the contolling body wants it to, as seen in the early 1920s, during the Great Depression, during the 1970s and post 2008.
One of the best charts is in the history section of that article. It shows how inflation used to swing wildly positive and negative, until the early 1900s (coinciding with the institution of the Federal Reserve), and is now quite stable relative to what it used to be like.
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