All the factors mentioned under "natural" rate of inflation seem like the ones that a "perfect central bank would use perfectly in setting monetary policy. I can see the usefulness of "natural" in that policy is completely constrained by exogenous variables, but it seems more "natural" to me to discuss what optimal monetary policy ought to be and examine how the sub-optima change as different constraints are imposed on central bank decision making.
Thank you very much. It seems that inasmuch as the Prince in Moscow’s Kremlin can no longer claim to be Czar of All the Russias, there should be some rectification of names...
Does inflation have a quality of latency? That is, if policies such as wage suppression and contractionary federal spending policies cause an inflation gap, does inflation rebound when these stressors are removed to capture not only the nominal current rate of inflation but also the accumulated total gap ( the skidmarks, if you will). Contrast this with GDP gap, which is generally acknowledged as not recoverable, Non-latent.
I hate to rain on the Basic Books marketing departments parade. "But at least it tells me that the Basic Book design team did an excellent and eye-catching job!". But the only part of Slouching which I truly detest is this cover.
This justification for Team Transitory's belief that elevated inflation would be a temporary phenomena is great. There's is already evidence that the Fed has gone far enough to rein in inflation. E.g. The Wall Street story about Scotts' inventory problems which reelect excess retailer inventories. I'm very afraid that you're friend Dr. Summers is correct that the Fed is going to deliver a massive recession.
This is a very Econ 101 argument, but like most of Econ 101 not well understood by journalists and so called "economic" pundits.
All the factors mentioned under "natural" rate of inflation seem like the ones that a "perfect central bank would use perfectly in setting monetary policy. I can see the usefulness of "natural" in that policy is completely constrained by exogenous variables, but it seems more "natural" to me to discuss what optimal monetary policy ought to be and examine how the sub-optima change as different constraints are imposed on central bank decision making.
Yes: it is an attempt to claim that the best interventionist monetary poicy is actually the natural one...
Your remarks about inflation are great but what I really love is your refusal to cede Kyivan Rus' to Muscovy.
Thank you very much. It seems that inasmuch as the Prince in Moscow’s Kremlin can no longer claim to be Czar of All the Russias, there should be some rectification of names...
The Kyivan Rus are the real Rus. Ivan was an upstart. :) They were trading with the the Byzantine Empire when the Muskovites were ... ?
It would be hilarious if Biden started referring to Putin's nation as Muscovy, and certainly a classier put-down than "evil empire".
Does inflation have a quality of latency? That is, if policies such as wage suppression and contractionary federal spending policies cause an inflation gap, does inflation rebound when these stressors are removed to capture not only the nominal current rate of inflation but also the accumulated total gap ( the skidmarks, if you will). Contrast this with GDP gap, which is generally acknowledged as not recoverable, Non-latent.
I hate to rain on the Basic Books marketing departments parade. "But at least it tells me that the Basic Book design team did an excellent and eye-catching job!". But the only part of Slouching which I truly detest is this cover.
This justification for Team Transitory's belief that elevated inflation would be a temporary phenomena is great. There's is already evidence that the Fed has gone far enough to rein in inflation. E.g. The Wall Street story about Scotts' inventory problems which reelect excess retailer inventories. I'm very afraid that you're friend Dr. Summers is correct that the Fed is going to deliver a massive recession.