Interview with author Daron Acemoglu, Professor of Economics at MIT Project Syndicate: Last July, you wrote that economists and investors were right to be apprehensive about deficit spending, public debt, and the risk of sustained price growth, but “it would be a mistake to respond to these concerns by pumping the brakes on the economy.” US inflation has now reached its highest level in decades, and the US Federal Reserve is taking increasingly aggressive action to rein it in. Is the Fed doing enough? How concerned are you that sharp tightening will stifle the economic recovery, especially given the additional inflationary pressures stemming from the war in Ukraine? Daron Acemoglu: Well
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