The Federal Reserve Can’t Cure Inflation by Itself

Wall Street Journal July 28 2022. Inflation was sparked by fiscal policy. The Fed’s tool to offset that is blunt: The Fed can try to cause a little bit of recession, and hope via Phillips curve that recession lowers inflation. To end inflation will require fiscal and monetary policy acting together, to fix the US long-run fiscal problem.

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Nobody Knows How Interest Rates Affect Inflation

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The end of economic illusions