Wall Street's dream of 'immaculate disinflation' is becoming reality and the economy is doing a lot better than people think, Nobel economist Paul Krugman says

• "Immaculate disinflation" is becoming a reality, according to Nobel economist Paul Krugman.
• Inflation coming down without sparking a recession is a dream scenario for Wall Street. 
• By a number of metrics, the economy is better off than it was a few years ago, Krugman said.

Wall Street's dream scenario is becoming a reality – and despite gloomy sentiment in pockets of the market, the economy is actually doing way better than people think, according to Nobel laureate Paul Krugman.

The top economist recently pointed to promising signs that inflation is on the downtrend. Prices cooled to a yearly pace of 3.2% in October – well-below the highs recorded last summer, when inflation touched 9.1%.