Krugman questions Fed: Why is inflation at 4% excessive and at 2% sacred?

Paul Krugman, winner of the 2008 Nobel Prize in Economics, questioned the new cycle of interest rate hikes by the US Federal Reserve, arguing that there is no empirical evidence that inflation at 2%- the reference target for major central banks- is more favorable for an economy than 4%. In his Sunday article published in The New York Times, and quoted by El Economista,…