Where’s the Inflation?

I see that Larry Summers has caught up to the state of the art in galaxy-brain thinking:

The brief stagflation of the ’70s produced a hysteria out of all proportion to its oil-fueled origins. The real lesson of that era is that central banks can crush inflation whenever they want. It’s not easy or painless, but it can be done. Conversely, the lesson of the present era is that producing inflation out of thin air is hard. This means that inflation is an asymmetric threat: we know what to do about high inflation but we don’t know what to do about low inflation. This in turn means we should be less worried about inflation than we are.

But as in so many other areas, the ghost of the ’70s lingers even half a century later. It’s a decade that deserves far more attention than it gets. It is the fountainhead of so much that’s gone wrong with the world since, and we’re still nowhere near over it.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate