Larry Summers Gets His ‘Told You So’ Moment on Inflation
The former Treasury secretary explains to Bloomberg’s Stephanie Flanders how he came to the conclusion U.S. prices would skyrocket.
You sounded the alarm early in the year and were considered a bit of a crank for doing so initially. But not anymore. What did you see that others didn’t see?
Larry Summers: Stephanie, you know, I’ve been right this year, but there have been plenty of years when I’ve been wrong.
Flanders: If wages do go up, and it’s true that we haven’t seen as much as you might have expected in the last few months. But if they, if they do go up—the last 20 years we haven’t seen a follow through from higher wages to higher inflation. Even the Fed’s own model doesn’t include much response from inflation. So why do you think this time will be different?
Bloomberg 23 december 2021
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