The Corner

World

Europe’s Inflation Problem and Ours

The headline numbers look similar, but the causes are different: European inflation is more supply-driven, while spending growth in the U.S. is more rapid. Who has it worse? Scott Sumner says that Eurozone inflation harms living standards more. The bad news for us: “In terms of bad monetary policy and future macroeconomic instability, the US has a much worse inflation problem.”

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