Anatomy of an Inflation Mess

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Policy-makers risk a doom loop whereby inflation today begets more inflation tomorrow. Here's how we got here.

NRPLUS MEMBER ARTICLE O ctober’s inflation numbers, released this week, notched the highest level since the 1990s. Policy-makers have spent the past year dismissing inflation as a transitory concern, but the 6.2 percent increase in prices is enough to alarm the most dovish economists. For decades, economists have voiced more concern about deflation in the U.S. than inflation. Indeed, inflation has been below the Federal Reserve’s 2 percent target for decades. How, then, did inflation rear its head so quickly?

Since the start of the pandemic, Congress has passed a total of $5 trillion in stimulus spending, totaling more than 20 percent of GDP. Thanks

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