Ex-Minister of Finance of the United States Lawrence Summers called the macroeconomic policy of the country worse in 40 years. This was announced in the Wall Street Week show, which is available on the Bloomberg website.
During the program, Summers criticized the last measures of the authorities to stimulate the economy. He drew attention to the fact that during the recovery after the coronavirus pandemic, the demand pressure will be intensified against the background of aggressive mitigation of the fiscal policy and the federal reserve system (Fed) of free monetary policy.
“This is the least responsible fiscal policy that we have conducted over the past 40 years,” said the former US Finance Minister. He noted that the “intransigent” left democrats and “completely irresponsible behavior of the Republican Party” are based on the established situation.
Summers suggested that in the coming years with probability one to three there is a risk of accelerating inflation with the onset of stagnation. Another option for developing events with the same chance of the Ex-Minister considered zero inflation. Also, according to him, there is the possibility that the Fed and the Treasury will receive rapid growth without inflation.