Greg Mankiw on the inflation-protected bond market:
A rise in expected inflation is not consistent with the conventional wisdom that the economy is on the verge of a serious slump driven by inadequate aggregate demand. It is, however, consistent with the hypothesis that policymakers are overreacting to some bad economic news with excessive monetary and fiscal stimulus.
This article available online at:
http://www.theatlantic.com/daily-dish/archive/2008/02/overstimulated/220377/
