WASHINGTON – History seems to have a way of placing current U.S. Treasury Secretary Janet Yellen and one of her predecessors, Lawrence Summers, on opposite sides of major policy battles. Right now, the two celebrated economists are facing off in an argument about whether government spending coupled with near-zero interest rates are creating the danger of unchecked inflation.
With inflation rising sharply over the past few months, Summers is seriously – and vocally – concerned about prices rising out of control, whereas Yellen has been supportive of the Federal Reserve’s apparent belief that the extra stimulus is justified as a means of bringing the economy back toward full employment, and that inflationary pressures will be temporary.
The Federal Reserve last week made markets shudder by responding to a sharp rise in inflation by suggesting that it might raise interest rates slightly in 2023 and take other measures to…
