> The government has been in deficit spending for a long time without much inflation
There was still inflation due to the deficit spending. Just because inflation was low doesnt mean it wouldnt have been lower without the deficit spending
There was still inflation due to the deficit spending. Just because inflation was low doesnt mean it wouldnt have been lower without the deficit spending
The fed should have predicted this as its pretty textbook economics. But they won't be held to account and working class people will pay the price through higher prices and lower wages. Then the remedy will be higher interest rates and a risk of higher unemployment and economic stagnation,
[0] https://mleverything.substack.com/p/where-did-the-12-trillio...
The Fed has caused many recessions in the last 40 years because they prematurely raised interest rates because they were scared of the inflation boogeyman.
I believe the Fed is doing a fabulous job threading the needle between inflation and recession in a very challenging, no right answer environment.