Politics

I have little doubt that, in time, inflation will abate, but it won’t happen because of any fiscal policy actions — fiscal policy being the realm of government spending and taxation. The traditional anti-inflationary fiscal policy calls for lowering aggregate demand by reducing government spending, raising taxes, or both. Of course, some anti-inflationary fiscal hawks may favor sharply reduced government spending, but the political will for that end isn’t sufficient; and that’s not ...