by William J. Luther
The American Institute for Economic Research
With inflation higher than it has been at any time in the last thirty-five years, many are wondering what can be done to bring it back down. On Sunday, the Washington Post ran twelve short essays from policy experts suggesting what the White House should do to combat inflation.
Some of the experts propose policies primarily intended to reduce nominal spending. Brian Riedl recommends paring back spending in the American Rescue Plan. Arnab Datta, Skanda Amarnath and Alex Williams call for “targeted reductions on government spending to health-care providers.” William Spriggs advocates raising taxes on “wealthy Americans who are currently responsible for very high demand.” Michael Strain says the White House should staff the Federal Reserve with inflation fighters, while Adam Posen makes the case for forward guidance at the Fed.