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Why inflation is stubbornly weak

Summary:
The U.S. economy is in its longest expansion on record. As unemployment touches historic lows, a striking feature of this expansion is that contrary to what economic theory would predict, inflation too remains strangely low. Here is a video I recorded with Michael Klein explaining why the traditional theory doesn’t seem to be working. Michael is the Executive Editor at Econofact, a nonpartisan organization that seeks to cut through fake news by addressing timely and relevant issues with just the facts. If you aren’t using them as a resource already, you should be! Share this

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The U.S. economy is in its longest expansion on record. As unemployment touches historic lows, a striking feature of this expansion is that contrary to what economic theory would predict, inflation too remains strangely low. Here is a video I recorded with Michael Klein explaining why the traditional theory doesn’t seem to be working. Michael is the Executive Editor at Econofact, a nonpartisan organization that seeks to cut through fake news by addressing timely and relevant issues with just the facts. If you aren’t using them as a resource already, you should be!

Megan Greene
Megan Greene is the Chief Economist at Maverick Intelligence, with a particular focus on Europe. She is also a senior fellow at the Atlantic Council, a columnist with Bloomberg and a senior research fellow at Trinity College Dublin. The opinions expressed here are her own and do not reflect those of any employers. Ms Greene offers a strictly independent voice without a political or investment agenda.

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