A growing crescendo of commentary places the blame for the current surge in US inflation squarely on the Federal Reserve. But much of the criticism is stupefyingly naive about the political pressures that the Fed and other central banks around the world have had to navigate in recent years.
Modern Monetary Theory, or MMT, an extreme version of this idea that called for the Fed to buy up debt as the Treasury issued it, had many influential adherents in politics and the media.
As recently as February 2022, with annual US inflation running at 7.9%, the New York Times published an admiring profile of leading MMT advocate Stephanie Kelton.
Kenneth Rogoff 4 May 2022