The Root Causes of Inflation

February 17, 2023

Job loss won’t solve them.

The Roosevelt Rundown features our top stories of the week.

Don’t Thank the Fed

Today’s inflation has been a supply-side story, as Roosevelt’s Joseph Stiglitz and Ira Regmi have written.

The Fed’s recession-risking interest rate hikes, meanwhile, are a demand-focused strategy—and one that shouldn’t get undue credit as inflation comes down.

“Slowing inflation has not resulted from changes in demand or the labor market but because supply chains are gradually easing and shortages are abated. Yet the Fed continues raising interest rates and flags an ‘out-of-balance’ labor market as too tight,” Regmi writes in a new blog post.

“As overall inflation slows . . . there isn’t a strong argument for curbing inflation by reducing wages and jeopardizing jobs.”

Read more in “As Inflation Slows, Don’t Credit the Fed.”


Who Really Ended the Cold War?

Did Cold War victory narratives extend the shelf life of neoliberalism?

In a previously unaired discussion, economic historian Brad DeLong digs into that question on How to Save a Country’s final bonus episode of season 1.

Hosts Felicia Wong and Michael Tomasky also talk about current US-EU economic tensions and a potential virtuous cycle on industrial policy. And later, they preview what listeners can look forward to in season 2, debuting this March.

Listen now, and tweet @FeliciaWongRI and @mtomasky about what you want to hear on How to Save a Country season 2.


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What We’re Reading and Listening to

How Crypto Failed Black Investors [feat. Roosevelt fellow Mehrsa Baradaran] – Vox

Biden Announces New Steps to Tackle Racial Inequality in Government – PBS NewsHour

What We Know about the 25M Americans Who Signed Up for Biden’s Student Debt ReliefPolitico

The Inflation Story Has Changed Significantly. Paul Krugman Breaks It Down. [podcast]The Ezra Klein Show