Prof. Mankiw wrote in the New York Times, excerpted below:
"Stimulus proponents argue that the Federal Reserve can deal with inflation by raising interest rates, which would slow spending. True, but it would be a mistake to put too much faith in the prescience and skill of central bankers.
When inflation got out of hand starting in the 1960s, it took until President Jimmy Carter’s appointment of Paul Volcker as Fed chairman in 1979 to get things back under control. The cost of the disinflation was a recession in 1982, at the time the deepest economic downturn since the Great Depression of the 1930s.
Put differently, speeding is dangerous. The result can be not just a ticket but a crash."
https://www.nytimes.com/2021/02/26/business/biden-stimulus-overheat-economy.html
Image credit - Richard Borge, New York Times
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