Inflation & Prices

Larry Summers Doesn’t See How Wage Inflation Can Fall Without a Recession

Larry Summers

Photographer: David Paul Morris/Bloomberg
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Former Treasury Secretary Larry Summers responded to a New York Times opinion pieceBloomberg Terminal by Paul Krugman on inflation, saying “team transitory” arguments in favor of a dovish Fed policy are “tendentious & selective.”

On the specific issue of wage inflation, Summers doesn’t see how it will come down significantly without “a meaningful recession.”