While Lawrence Summers may be overstating the inflation threat, a careful review of Joe Biden’s stimulus plan along the lines he proposes is probably a good idea.
For Koichi Hamada's latest contributions to The Japan Times, see below:
The COVID-19 pandemic and environmental threats will hopefully fuel demands for greater social solidarity.
There's reason to hope that the COVID-19 crisis will catalyze a shift toward more just societies
Economies like Japan will have little choice but to pursue post-pandemic monetary expansion.
Fiscal, not monetary measures, should be when disasters and epidemics strike.
In the 1980s and 1990s, people were acutely aware of inflationary risks, whereas economic actors today may be setting their expectations based on a different set of considerations.
It's unwise to burden a battered economy with higher taxes.
US President Donald Trump's trade war with China is driven at least as much by anxiety over China's rise as by economic rationality. That kind of insecurity can have disastrous consequences.
Japan's experience doesn't prove that Modern Monetary Theory works, as some have argued. But increasing deficit-financed spending, in Japan and elsewhere, may still have merit, despite inflationary risks.
We need trade competition among economic agents but cooperation among governments