My November column for Project Syndicate...: Some respected economists are talking as if the US economy is in serious inflationary trouble. But the current uptick in price growth is highly likely to be a largely benign consequence of the post-pandemic recovery.
I agree completely. Bankers hate inflation because it makes it too easy to repay loans. Since they control our financial infrastructure, they have been keeping the economy in stasis for decades rather than accept the level of inflation necessary for non-financial economic growth. If the economy ever returns to its 1950s & 1960s growth rates, we're going to see serious skid marks.
I submit that the reason you cannot follow the "logic" of the inflation hawks is that there is none. It's scare-stuff designed to justify policies that keep workers down. The real question is "why would economists whom you respect be subscribing to morally bankrupt policy prescriptions."
I agree completely. Bankers hate inflation because it makes it too easy to repay loans. Since they control our financial infrastructure, they have been keeping the economy in stasis for decades rather than accept the level of inflation necessary for non-financial economic growth. If the economy ever returns to its 1950s & 1960s growth rates, we're going to see serious skid marks.
I submit that the reason you cannot follow the "logic" of the inflation hawks is that there is none. It's scare-stuff designed to justify policies that keep workers down. The real question is "why would economists whom you respect be subscribing to morally bankrupt policy prescriptions."
Ay, that’s the rub!