It is past time that we stopped denying what the data are telling us. Until the structure of the economy and the prevailing economic-policy mix changes, there is little risk that the US will face excessive inflation over the next five years. Monetary policymakers would do well to direct their attention to other problems in the meantime.

J. Bradford DeLong is professor of economics at the University of California at Berkeley and a research associate at the National Bureau of Economic Research. He was deputy assistant U.S. Treasury secretary during the Clinton administration, where he was heavily involved in budget and trade negotiations.

©Project Syndicate

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