The Inflation Surge of 2021–22: Scarcity of Goods and Commodities,Strong Labor Markets and Anchored Inflation Expectations

The key to understanding the series of supply shocks that have hit inflation is the nature of the COVID-19 recession.

     

Fiscal Policy at the Zero Lower Bound

Intereconomics - With interest rates at zero where they are expected to remain for a long time, and with the main risk being that inflation is too low, fiscal policy must be active and contribute...