Between 1942 and January 1946, national output more than doubled, unemployment dipped below 2 percent, and real civilian consumption increased by 50 percent. Yet thanks to an across-the-board price freeze, prices rose merely 3.3 percent per year. What lessons can we draw from the initial failures and ultimate success of this stabilization program?
Financial regulation lies at the core of sound inflation management. Accordingly, progressives seeking to turn the page on the past few decades of failed macroeconomic policymaking should not hesitate to bring the full scope of financial regulatory tools to bear in the pursuit of just price stability.
Shelter is one of the largest items in a person’s budget, and among the most rigid. How can the state ensure that renters don’t get crushed as workers during a recession, and then crushed again with housing costs as the economy recovers?
In developing countries, inflation is often driven by the failure of the food supply chain. While economists are well-aware of this, they do not adequately value policies other than monetary policy for responding to inflation. It is time to discard this short-sighted approach.
To explain soaring energy prices, we must look beyond supply shortfalls and bottlenecks to the choices that governments have made about how to price energy.
Raúl Carrillo interviews Darrick Hamilton about the Fed’s approach to unemployment, the racialized harms of shifting the burden of price stability onto workers, and the long struggle for fair and full employment.
How inflation affects a country depends on how its currency is situated within the global monetary order. Peripheral states with subordinate currencies are both vulnerable to, and constrained by, monetary policy decisions at the core, an arrangement that penalizes the global periphery in ways that parallel historical patterns of uneven exchange.
The Fed was not designed to fight inflation, nor is it well equipped to do so. It is time for legislators to expand the macroeconomic policy toolkit.
Introducing a symposium on the hottest topic in macroeconomics.