fbpx The U.S. and Europe Have Different Inflation Problems - Jason Furman | Harvard Kennedy School

HKS Affiliated Authors


June 6, 2022, Opinion: "Leo Tolstoy’s observation that “all unhappy families are unhappy in their own way” applies to the multidecade-high inflation being experienced by countries around the world. The headline inflation numbers are increasingly similar—around 8% in both the U.S. and Europe—but the causes, consequences and treatment remain quite different. In particular, the U.S. has higher underlying inflation—which is potentially more persistent and is appropriately being treated with aggressive monetary tightening. In contrast, more of Europe’s inflation is imported—which makes it more painful than U.S. inflation but also likely more transitory, and so the European Central Bank should follow a comparatively restrained response."

HKS Faculty Author - Jason Furman