The moment of danger for Europe will be when the recovery starts

Perversely, the US president’s fiscal package has come under friendly fire from luminaries such as Lawrence Summers and Olivier Blanchard, who worry it will overheat the economy.

Sustained high demand pressure, far from causing inflation, could instead reverse the long decline in US labour force participation.

Removing national inhibitions against more deficit spending 

Martin Sandbu FT 14 February 2021


https://www.ft.com/content/1d8e4012-1593-46ed-a96d-a6764e74af9e

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