Lots of people are dunking on Larry Summers today, and in my view rightly so; this piece by Jordan Weissman seems especially on point. Yes, a rescue package this size could lead to overheating, but how bad is that? 1/https://slate.com/business/2021/02/larry-summers-biden-relief-plan-washington-post-op-ed.html …
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It's that last one there. No one should be listening to him, they aren't for the most part, and he's mad.
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So Summers will be vindicated if headline inflation tops 2.5% within the next 3 years then. Ok, ok: that's what bad faith looks like. My point is that Summers reasonably IDs the risk of over-heating, while I think overheating is a feature & not a bug. Reasonably different views.
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Hmmmm.. I wonder who was right and who was wrong 10 months later?
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