Lawrence Summers: "The Way to Get Rid of Inflation Is Unemployment"

Former US Treasury Secretary and Harvard University Faculty Member Lawrence Summers made an assessment about global inflation. Summers noted that unemployment must be above 5 percent for five years in order to reduce inflation, which also affects the United States. He also underlined the call for a period of aggressive tightening similar to that of the 1970s and 1980s.

Former US Treasury Secretary Lawrence Summers stated that rising inflation can be solved with unemployment. Summers, at a meeting he attended in London, stated that for inflation to fall in the USA, unemployment should be above 5 percent for five years. Lawrence Summers, a faculty member at Harvard University, said “In other words, we need to see unemployment above the 7.5 percent level for two years, or 6 percent for five years or 10 percent for one year, for inflation to fall." While emphasizing his previous calls for aggressive tightening, Summers added that the US should repeat the hard tightening cycle made under Paul Volcker in order to control inflation. Temporary Tax Exemption Decision on Gasoline from US President Joe Biden According to data from the American Automobile Association (AAA), the average price of gasoline in the country rose to a record high compared to last year. The President of the United States of America, Joe Biden, stated that they may soon declare a temporary exemption on the federal gasoline tax in order to combat the gasoline prices that affect the whole world. https://ieconomy.io/abd-baskani-joe-bidendan-benzinde-gecici-vergi-karari/