HKS Affiliated Authors


June 21, 2021, Video: "Two months of sharply rising prices have raised concerns that large government financial rescue packages and the Federal Reserve's ultra-low interest rate policies are fueling higher inflation. Consumer prices rose 5% in May from a year earlier, the largest yearly increase since 2008. Many economists see the recent spike as temporary, while others worry that rising consumer prices will persist. Jason Furman, a professor at Harvard University and former President Obama's top economic adviser, thinks it's more complicated, though he leans toward the "persist" camp. Furman notes that all economists expect inflation will slow from its current pace, but not all think it will fall back to the Fed's preferred level of slightly above 2% a year. The Associated Press spoke to Furman about why higher inflation may be temporary, why it may continue and whether a little more inflation is all that bad."

HKS Author - Jason Furman