Inflated Deflation: Kaus was confused about Krugman being concerned, in an apparent bi-polar moment, over deflation one day, and inflation the next. Luckily there are those who can explain what's going on; Mr. DeLong I presume. I won't rehash what others have already done in a much more understandable format than I could provide, other than to re-post a quasi-footnote from DeLong:

Ever wonder why supply-side non-economists like Robert Novak and Fred Barnes hate Alan Greenspan so much? It's precisely because Greenspan was not complaisant at the end of the 1980s. Greenspan did not deal with the strong upward pressure on interest rates resulting from the Reagan deficits by turning on the faucet, expanding the money supply, and raising the rate of inflation. And they have never forgiven him for it.

Just shows, politicians hate it when others are right.