Inflation: A Bar Fight of Economic Theories

This chapter explores the contentious debates among economists about the causes of inflation, focusing on the impact of government fiscal and monetary policies, particularly during the COVID-19 pandemic. By likening economists to participants in a bar fight, it illustrates the overlapping yet conflicting perspectives that attribute current inflation to factors like excessive government spending and the Fed's low interest rates. The chapter also examines the implications of relief packages and supply shocks on wealth distribution and wages, highlighting the complexities behind the ongoing inflationary cycle.