by So now he’s going to tell the Biden people to keep increasing the rates… Summers wants to demonstrate that Monetarism works and re-establish Monetarisms dominance after 15 years of ZIRP which resulted in no Art Degree “inflation!” …. This over any other real economic or Democrat political objective... Democrat left AWOL on this except maybe Pocahontas…iow if they think their "inflation" comes down but there is no commensurate recession after all of these extreme unprecendented rate increases then Summers will consider it a failure of policy …. not a failure of Monetarism…This analysis from Ricardo Trezzi, who does careful work in the inflation front, is concerning. It suggests that wage inflation, which I regard as the best “super core” inflation measure, may have not been decelerating.
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So now he’s going to tell the Biden people to keep increasing the rates… Summers wants to demonstrate that Monetarism works and re-establish Monetarisms dominance after 15 years of ZIRP which resulted in no Art Degree “inflation!” ….
This over any other real economic or Democrat political objective... Democrat left AWOL on this except maybe Pocahontas…
iow if they think their "inflation" comes down but there is no commensurate recession after all of these extreme unprecendented rate increases then Summers will consider it a failure of policy …. not a failure of Monetarism…
This analysis from Ricardo Trezzi, who does careful work in the inflation front, is concerning. It suggests that wage inflation, which I regard as the best “super core” inflation measure, may have not been decelerating. This would make the @federalreserve's already difficult…
— Lawrence H. Summers (@LHSummers) April 11, 2023