Summary of Fight Inflation Without Recession? How Two Top Economists See It | NPR Politics

00:00:00 - 00:15:00

In this video, two economists discuss the government's efforts to reduce inflation without causing a recession. They say that the government should focus on encouraging economic growth, increasing spending on infrastructure and education, and creating more jobs.

• 00:00:00 Inflation is still high by some measures and is no longer limited to a handful of categories that you could directly tie to the pandemic or the war in Ukraine. Inflation is likely to have substantial costs in terms of an economic downturn and rising unemployment.
• 00:05:00 Inflation is a concern for economists, with some predicting a recession if prices are not brought under control. Larry Summers, the former head of the US Treasury Department and current director of the National Economic Council, has been sounding the alarm about inflation since the early months of the Obama administration. The Economist has also adjusted its expectations upwards, stating that there is growing consensus that the US is heading for recession. Fed chairman Jerome Powell has said that they would see it as a success if they managed to keep unemployment under five percent.
• 00:10:00 In this NPR Politics video, two top economists discuss the administration's efforts to reduce inflation without a recession. One says the administration has been more successful in some areas than others, but the responsibility for controlling inflation falls primarily to the Federal Reserve. The other economist says the economy is doing well and the Democrats are being punished for high inflation.
• 00:15:00 Scott Patterson, an economics professor at the University of Illinois at Urbana-Champaign, and Lawrence Summers, who served as the 11th Secretary of the Treasury under President Bill Clinton, discuss how the U.S. can avoid a recession while still fighting inflation. The two economists say that the government should focus on encouraging economic growth, which would lead to more jobs and wages. They also say that the government should increase spending on infrastructure and education, as these investments would create jobs and help to spur economic growth.