Understanding Inflationary Finance | AIER

Understanding Inflationary Finance | AIER

Despite common assertions to the contrary, government spending does not necessarily cause inflation. Whether it does so depends on the willingness of the monetary authority to help finance the government spending by printing money.  Inflationary finance, or...
There’s No Such Thing as a Wage-Price Spiral

There’s No Such Thing as a Wage-Price Spiral

Hotter-than-expected inflation has rekindled fears about a wage-price spiral. Writing in the Wall Street Journal, Jason Furman argues the Fed should tighten even faster. The economy’s “underlying inflation” is due to “extremely tight labor markets,” he writes....