Source: CounterPunch
by Dean Baker
“Peter Coy had a somewhat bizarre column in the New York Times this week warning us that even though we have gotten rid of most of the pandemic inflation with little rise in unemployment, ‘any further decline in inflation may not be as painless.’ The column highlights a new paper by Gauti Eggertsson, one of the nation’s leading macroeconomists. Whether or not Eggertsson’s theoretical analysis is correct, it is beside the point in terms of the current economy. We don’t need any further decline in inflation because we have already hit the Fed’s 2.0 percent target. If it seems I am getting ahead of the game, you have to look at the data more closely.” (09/05/24)