Inflation: A Misguided Fear

A trader wears a mask on the floor of the New York Stock Exchange as the building prepares to close due to the coronavirus, March 20, 2020. (Lucas Jackson/Reuters)
Why disinflation is the real worry

NRPLUS MEMBER ARTICLE I s it time to start worrying about inflation? For some observers, the answer is an emphatic yes. They fear the drastic steps policymakers are taking to keep the economy afloat during the COVID-19 crisis are pushing government finances to a tipping point, one where soaring inflation will once again rear its ugly head.

It is true that the stock of marketable treasury securities is likely to reach $21 trillion this year, causing our national debt to exceed the size of the economy. The Federal Reserve, meanwhile, is expected to expand its balance sheet to almost $10 trillion this year as it

David Beckworth is a senior research fellow with the Program on Monetary Policy at George Mason University's Mercatus Center, and a former international economist at the U.S. Department of the Treasury.

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