Cars, Reopening, & Housing Drove American Inflation While Natural Gas Heated European Inflation: Disaggregating Differences in US-Europe Inflation
When we disaggregate the aggregate inflation statistics, we find that the sources of high inflation in the US and Europe are different.
Proceed With Caution! Comparing Inflation Across Countries is Complicated
In this first piece of a series, we’re going to walk through an overview of the ways inflation statistics can diverge between countries and demonstrate just how difficult it is to establish apples-to-apples comparisons between aggregate inflation measures in different countries.
The “Break Glass” Moment: Secretary Yellen Should Use the ESF to Insure and Accelerate Commodity Production
The Department of Treasury should be making use of the Exchange Stabilization Fund (ESF) to target accelerated supply-side responses and insure critical producers against downside risks.
Discretion is the Point: The Misunderstood Legal Bounds of the ESF
Given the discretion afforded the Secretary in utilizing the ESF, and the strong correlation between commodity price volatility and exchange rate volatility, the Secretary has the authority to establish a Supply Insurance and Acceleration Program for key commodities.
A Holistic Anti-Inflationary Strategy
The White House and Congress should consider an “all-of-the-above” approach oriented around three objectives: (1) investments where productive capacity; (2) targeted policies for reducing sectoral demand; and (3) policies that facilitate greater competition and technological diffusion.
