Even ECB crank concedes that core inflation is a lame tool

Even a broken clock is right twice a day. Unless it’s a 24-hr digital clock, then it’s only correct once. Which is still better than an ECB crank like Bini Smaghi, who seems to have recently been right for the first time in his life, by disparaging the idea of core inflation (i.e. without food and energy prices) as a good measurement of monetary policy.

“For central banks around the world, this means that core inflation is no longer a very useful indicator for monetary policy, and should probably be abandoned,” Bini Smaghi said.

NO WAY. This is actually a shocking statement coming from someone like this. Of course, this would probably present itself as an opportunity for monetary authorities to devise statistical methods that are more arcane and obfuscating, rather than less so. I bet the next inflation measuring tool will be a basket of goods consisting 100% of iPads.