Posted on 03/05/2022 5:37:21 PM PST by ChicagoConservative27
On Friday’s broadcast of Bloomberg’s “Wall Street Week,” economist Larry Summers stated that “we’re now facing real risks of a 1970s-type scenario…the same kind of broad phenomenon of stagflation.” And that this is partially “a response to the excessive stimulation of the economy during 2021.”
Summers stated that monetary policy is effective at tamping down inflationary pressures, “but it may not be an effective tool without engineering a slowdown in the economy. The last dot plot has the Fed believing that three things are going to happen together: that inflation’s going to fall below three, unemployment’s going to stay well below four, and interest rates are never going to go above 2.5. I don’t think those things are all likely to happen together. And so, the Fed’s going to have to make some very difficult choices. I think that there’s much more danger that we’re going to do too little to contain inflation than there is danger that we’re going to do too much.”
(Excerpt) Read more at breitbart.com ...
President Reagan was a breath of fresh air. Miss that guy!
Supply side economics is the only way to
W ip
I nflation
N ow
Brings back a lot of memories. Prices were going up so fast that my mom stopped buying meat. A lot of TV dinners & hamburger helper.
Brandon, the 1970s are calling and they want Jimmy Carter’s economic policies back.
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