Author Archives: Menzie Chinn

Swedish Inflation: Blame It on Biden!

The evidence is overwhelming. As Steven Kopits comments:

Yes, Powell and Yellen [are at fault for causing the inflation and resulting banking crisis]. Nothing new there.

And, yes, the US can export inflation. If a US fiscal impulse goes into a full employment (or upwardly constrained employment) economy, then the difference will show up in imports. We would expect to see a blow-out in the trade deficit and clogging of ports. Which we did. And we would expect that supply chains across the world would be under pressure with price increases across the globe. Which we did. So, yes, best I can tell, the US is able to export inflation.

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