Unraveling Inflation: Causes and Controversies

This chapter explores the complex interplay between government borrowing, spending during the pandemic, and inflation, highlighting a heated debate among economists regarding its origins. It contrasts fiscal and monetary policies, scrutinizing the efficacy of COVID relief packages and the Federal Reserve's responses. The discussion also addresses the impact of recent supply shocks on inflation rates, underlining the nuanced dynamics of wages and prices in the current economic scenario.