NEC Webinar: Inflation Fears and the Biden Stimulus: Look to the Korean War, Not Vietnam

Speaking at the National Economists Club, PIIE senior fellow Joseph E. Gagnon invoked the economy of the 1950s to reassure economists concerned about overheating as a result of President Joseph R. Biden Jr.’s $1.9 trillion COVID-19 relief package. A burst of government spending on the Korean War led to a large but temporary surge in inflation in 1951 but left no lasting economic damage. Providing the Federal Reserve commits to curbing long-term inflation, Gagnon argues any inflationary episode inflicted by short-term spending to fight the COVID-19 pandemic and restart the economy should be temporary.
Video posted with permission of the National Economists Club. Event details are available here.