What's Causing Accelerating Inflation: Pandemic or Policy Response?

Created
Sat, 05/03/2022 - 02:48
Updated
Sat, 05/03/2022 - 02:48
This paper examines the recent increase of the measured inflation rate to assess the degree to which the acceleration is due to problems created (largely on the supply side) by the pandemic versus pressures created on the demand side by pandemic relief. Some have attributed the inflation to excess demand, most notably Larry Summers, who had warned that the pandemic relief spending was too great.