Plain English with Derek Thompson

The Big Inflation FAQ: Why It’s So High, How Everyone Got It Wrong, and What's Next

Jun 13, 2022

Justin Wolfers, a professor of public policy and economics at the University of Michigan, breaks down the complexities of inflation and its surprising trajectory. He discusses the stark differences between core and headline inflation, emphasizing how volatile prices distort economic health perceptions. Wolfers tackles hot topics like 'greedflation' and the impact of wage growth on inflation. He also critiques the media's pessimism on the economy, despite a robust labor market, providing vital insights into the Federal Reserve's balancing act amidst rising rates.

52:23

Episode guests

Justin Wolfers

Highlights

AI Chapters

Episode notes

Is There a Recession in 18 Months?

01:08

Is Cor Inflation a Good Prediction?

01:59

The Fet Is Trying To Destroy Demand

01:10

Intro

6min

Understanding Core vs. Headline Inflation

11min

Economic Chaos in the Wake of a Pandemic

4min

Wage Growth and Inflation: Understanding Economic Impacts

3min

Understanding Greedflation: Myths vs. Reality

4min

Inflation Insights: Core vs. Headline

7min

Navigating Inflation: The Fed's Balancing Act

17min

Inflation is the story that everybody keeps missing. In 2020, many people didn't expect inflation to rise. Wrong. In 2021, many expected inflation to be brief or "transitory." Wrong. Last month, many expected inflation to peak. wrong. In May, inflation reached its highest level in more than four decades. But there’s a bigger story to tell here. What are the subtler inflation numbers telling us about the future of the economy? And is the media being too pessimistic about the economy given how strong the labor market has been coming out of the pandemic? To answer those questions, Derek welcomes Justin Wolfers, a professor of public policy and economics at the University of Michigan. As you’ll hear, Wolfers is brilliant, straightforward, and incredibly un-shy about telling Derek when he thinks he's full of it. If you think Derek is full of it, or if you would like to drop a more complimentary line, send your notes, questions, and curiosities to PlainEnglish@spotify.com

Host: Derek Thompson

Guest: Justin Wolfers

Producer: Devon Manze

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