Pinelopi Koujianou Goldberg on inflation targets, deglobalization, US-China tensions, and more

Goldberg proposes politically feasible supply-side policies for tackling inflation, questions America’s approach to industrial policy, 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 Pinelopi Koujianou Goldberg, Professor of Economics at Yale University and a former World Bank Group chief economist. To read the full interview – in which Goldberg proposes politically feasible supply-side policies for tackling inflation, questions America’s approach to industrial policy, illuminates the complex relationship between trade and inequality, and more – [click here](. Pinelopi Koujianou Goldberg Says More... Syndicate: You have often [pointed out]( that inflation has been exacerbated by trade protectionism, which weakens the market competition that induces firms to keep prices low, and by immigration restrictions, which lock in labor shortages. At a time when a return to unfettered globalization appears politically unfeasible – as you recently acknowledged, new restrictions on exports to China have [received]( bipartisan approval – which policy changes would have the most impact? Pinelopi Koujianou Goldberg: First, it is important to remember that controlling inflation is not and should not be the only goal of policy. Sometimes, we must pursue imperatives that may generate inflationary pressures – for example, addressing climate change. But let us focus on inflation for a moment. Taking into account political feasibility – and in addition to managing interest rates – I would suggest, first... [Continue reading]( [PS. The 2023 Sustainability Book Award is now open for submissions.]( By the Way... PS: European leaders argue that US subsidies for cars, clean energy, and semiconductors pose a threat to their economies. Are they right? Is there a case for the US to support critical sectors, and how might it do so without harming itself and its allies? PKG: I am not against industrial policy in principle, a stance that may set me apart from many other economists. In fact, I believe that industrial policy can be great – when it succeeds. But, while there are many examples of successful industrial policies, there are many examples of policy failures as well. It is hard to know into which category a policy will fall ex ante, but I do have reservations about current US initiatives... [Continue reading]( [PS Read More: Most Recommended Reads of 2022]( [Most Recommended Reads of 2022]( Throughout 2022, PS commentators shared the books that they believe are essential reading for PS readers. As the new year begins, peruse the works that appeared repeatedly in their lists, and find out why they deserve in place on your bookshelf. [Read now]( [PS. Subscribe now to secure your copy of PS Quarterly: The Year Ahead 2023.]( [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. Receipt of this newsletter does not guarantee rights to re-publish any of its content. 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](.