Krugman says US economy strong: low unemployment, falling inflation. Cites reduced misery.

<p>Nobel laureate economist Paul Krugman wrote in a New York Times op-ed piece:</p><ul><li>"The plunge in the misery index reflects both what didn't happen and what did" </li><li>"What didn't happen, despite a drumbeat of dire warnings in the news media, was a recession. The U.S. economy added four million jobs over the past year, and the unemployment rate has remained near a 50-year low."</li><li>"What did happen was a rapid decline in inflation"</li></ul><p>The "misery index" rose as prices soared in 2021 and 2022, but fell over the past 12 months. Krugman said in his piece that its been a "remarkable turnaround".</p><p>Check out what else has turned around!</p><p>—</p><p>The Misery Index is an economic indicator invented by economist Arthur Okun, an adviser to President Lyndon Johnson in the 1960s. </p><p>In essence it adds the unemployment rate to the inflation rate.</p><p>Often used to indicate economic discomfort for the average person, in that both high unemployment and high inflation create economic costs for people. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.