Say More: An Interview with Robert J. Barro

Robert J. Barro discusses inflation risk, US-China relations, the American Jobs Plan, and more The PS Say More Newsletter | [View this message in a web browser]( [PS Say More]( This week in Say More, PS talks with Robert J. Barro, a professor of economics at Harvard, visiting scholar at the American Enterprise Institute, and research associate of the National Bureau of Economic Research. To read the full interview – in which Barro warns that the anchor of long-term inflation expectations is being pulled up, advises the US on how to deal with China, and critiques Joe Biden’s proposed infrastructure package – [click here](. Robert J. Barro Says More… Syndicate: In February, you [warned]( that the US Federal Reserve is squandering the reputational capital that former Fed Chair [Paul Volcker]( bequeathed to it (by maintaining high interest rates despite a recession), noting that, today, “[fiscal deficits]( as a share of GDP are running at unprecedented peacetime levels.” But the coronavirus pandemic has often been compared to a war, in terms of its casualties and economic impact, and maintaining high interest rates during such a crisis would, according to the conventional view, exacerbate the recession. How can policymakers balance the need to keep long-term inflation expectations low with the short-term imperative of fostering economic recovery? Robert J. Barro: Large fiscal deficits make sense... [Continue reading]( [Pulling Up the Inflation Anchor]( [Pulling Up the Inflation Anchor]( By Robert J. Barro Rather than worrying about the prospects of higher long-term expected inflation, the US Federal Reserve is exuding confidence that it can maintain price stability should the need ever arise. It should think again, before the inflation genie has escaped from the bottle. By the Way... PS: In 2016, you and Tao Jin [wrote]( that among the measures that could have promoted a faster recovery after the Great Recession were public infrastructure, such as highways and airports, and fiscal discipline (including a moderate debt-to-GDP ratio). In view of this, how do you assess the Biden administration’s proposed $2 trillion, eight-year infrastructure plan? RJB: A major infrastructure package, combined with comprehensive tax reform (to finance the outlays), could have been a good idea. But... [Continue reading]( [An Interview with John Andrews]( Previously in Say More [John Andrews]( – a former editor and foreign correspondent for The Economist – considers the geopolitical implications of vaccine nationalism, assesses Joe Biden’s approaches to Iran and Saudi Arabia, and recalls haunting experiences from his foreign correspondent days. [Read more](. [Check out the Say More archive]( [PS. What do you think?]( [The Return of the Taliban]( Previously in Opinion Has It [The Return of the Taliban]( [Ashley Jackson]( joins [Elmira Bayrasli]( in this PS podcast After 20 years and more than $2 trillion, the US is under growing pressure finally to withdraw from Afghanistan, leaving the country where it started: in the hands of the Taliban. What will this mean for Afghanistan’s people, their neighbors, and the world? Listen on [PS]( [Apple]( [Soundcloud]( [Spotify]( [Google]( and all other listening apps. Or [read the transcript](. [Check out the Opinion Has It archive]( [Nobel Prize Summit - Our Planet, Our Future]( [Facebook]( [Twitter]( [LinkedIn]( Project Syndicate publishes and provides, on a not-for-profit basis, original commentary by the world's leading thinkers to more than 500 media outlets in over 150 countries. This newsletter is a service of [Project Syndicate](. [Change your newsletter preferences](. Follow us on [Facebook]( [Twitter]( and [YouTube](. © Project Syndicate, all rights reserved. [Unsubscribe from all newsletters](.