{"id":1190,"date":"2022-03-18T18:55:07","date_gmt":"2022-03-18T18:55:07","guid":{"rendered":"https:\/\/artsci.case.edu\/fridaylunch\/?p=1190"},"modified":"2024-06-10T18:56:08","modified_gmt":"2024-06-10T18:56:08","slug":"inflation","status":"publish","type":"post","link":"https:\/\/artsci.case.edu\/fridaylunch\/2022\/03\/18\/inflation\/","title":{"rendered":"Inflation"},"content":{"rendered":"\n\n\n
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\"college
\nCenter for Policy Studies
\nPublic Affairs Discussion Group<\/span><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Inflation<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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\"headshot\"<\/p>\n

Mark Sniderman, Ph.D. – Executive in Residence and Adjunct Professor of Economics, Weatherhead School of Management; former Executive Vice President, Federal Reserve Bank of Cleveland<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
Friday March 18, 2022
\n12:30-1:30 p.m.
\nOnline Zoom Meeting<\/strong><\/span><\/p>\n

Dear Colleagues:<\/p>\n

On March 11, the print edition of the\u00a0New York Times<\/em>\u00a0headlined that, \u201c<\/span>Inflation Rises At Fastest Clip in 4 Decades<\/span><\/a>, based on February economic data. Then, the\u00a0Sunday Times<\/em>\u00a0ran a long article<\/span>\u00a0(originally online March 9<\/span><\/a>) titled, \u201cSkyrocketing Inflation Starts to Get Deeply Personal,\u201d based on a February survey that asked 2,200 respondents about their perceptions of price trends. The report emphasized that inflation now is very different from when it first began to become visible a year ago: \u201cwhen asked which of the price increases have caught their attention, many mentioned necessities like gas, milk, ground beef and bread \u2013 a notably different universe of products than the narrower set of items, like used cars and raw lumber, that were soaring in price last spring.\u201d<\/p>\n

Inflation seems to have become the major domestic policy issue, and public opinion about the Biden administration\u2019s response is<\/span>\u00a0decidedly negative<\/span><\/a>. Concern about inflation has revived beliefs that the federal budget deficit needs to be reduced so as to prevent high inflation and interest rates \u2013 beliefs that were extremely powerful in the 1980s but had faded after a few decades of not coming true. Concern about increased debt feeding inflation was one of the major reasons Senator Joe Manchin gave when announcing that<\/span>\u00a0he would not vote for<\/span><\/a>\u00a0President Biden\u2019s Build Back Better proposal. Obama Administration economists Larry Summers and Jason Furman, who in 2019 were saying it was<\/span>\u00a0time to start worrying less<\/span><\/a>\u00a0about budget deficits, now say this is different. Summers claims that the American Rescue Plan Act passed in 2021<\/span>\u00a0helped cause the current price increases<\/span><\/a>. Furman has supported the Build Back Better Act on the grounds that it would be largely paid for and not increase the deficit, but nonetheless also says that \u201c90 percent of inflation is<\/span>\u00a0the result of excess demand driven by fiscal and monetary policy<\/span><\/a>.\u201d<\/p>\n

The current inflation directly threatens the well-being of most Americans; makes it even more likely that the Republicans could re-take both chambers of Congress in November; and therefore could cause the further effects of a Republican takeover. But what can be done about it? Consider the concept of \u201cexcess demand.\u201d Prices should rise when demand grows more quickly than supply. But does that mean that, if supply shrinks due to supply chain problems, demand therefore should be constricted? So, if tankers can\u2019t get in or out of ports, we need to reduce wages or increase unemployment to reduce demand to match? If fossil fuel prices increase due to supply shocks, even if those shocks are partly due to government policy (such as boycotting Russia), does that mean policy-makers should induce a recession so as to control inflation? That could be done by either fiscal or monetary policy, both of which contributed to the recessions of 1974 and 1982. Neither was good for the party that held the presidency. Each created a lot of misery.<\/p>\n

As happens so often, we\u2019re back to Lenin: What Is to be done? Hopefully with better answers. It\u2019s great to welcome, as a guide to the problem, Mark Sniderman. In addition to his long career with the Cleveland Fed, he also served as senior economist for economic policy analysis for the U.S. Senate Budget Committee, while on leave from the Fed. He can bring us deep understanding of the varying views of fiscal and monetary policy, and how the economy works beyond those factors. Join us to get a sense of the perspective from which some of our lucky students benefit.<\/span><\/p>\n

Signing In<\/h3>\n

The \u201cFriday Lunch\u201d has been convening each Friday that classes are in session during Fall and \u201cSpring\u201d semesters since 1989. Regrettably, after more than three decades meeting in person and eating lunch (or at least coffee and cookies) together, we had to take our gatherings online after the pandemic hit in 2020. I am hoping we can do some sort of dual-delivery, in-person and online combination, before this semester ends.<\/p>\n

But not yet. For now we will still meet by Zoom. Our discussions begin at 12:30 p.m., the usual time. Even when we resume in-person meetings, we will set it up so people can participate by Zoom.\u00a0Each week we will send out this newsletter with information about the topic. It will also include a link to register (for free) for the discussion.<\/strong>\u00a0If you do not get the newsletter, you should also be able to get the information each Monday by checking<\/span>\u00a0http:\/\/fridaylunch.case.edu\/<\/span><\/a>.\u00a0When you register, you will automatically receive from the Zoom system the link to join the meeting. Please note that we will open the meeting at\u00a0Noon<\/strong>\u00a0so people aren\u2019t all signing on at once, but\u00a0the speaker starts at 12:30<\/strong>.<\/span><\/p>\n

This week’s link for registration is:<\/span><\/p>\n

https:\/\/cwru.zoom.us\/meeting\/register\/tJUtf-mprjsiHdx30J1wv8ji_nrCuqGe7kr0<\/span><\/a><\/p>\n

After registering, you will receive a confirmation email containing information about joining the meeting.<\/p>\n

Please e-mail<\/span>\u00a0padg@case.edu<\/span><\/a>\u00a0if you have questions about how the Zoom version of the Friday Lunch will work or any other suggestions. Or call at 216 368-2426 and we’ll try to get back to you. We are very pleased to be partnering this semester with the<\/span>\u00a0Siegal Lifelong Learning Program<\/span><\/a><\/strong>\u00a0to share information about the discussions.<\/p>\n

Best wishes for safety and security for you and yours,<\/p>\n

Joe White
\nLuxenberg Family Professor of Public Policy and Director, Center for Policy Studies<\/span><\/p>\n

\n

About Our Guest<\/span><\/h3>\n

Mark Sniderman\u2019s<\/strong>\u00a0academic and professional interests are focused on macroeconomics and financial regulation, especially the roles played by central banks. He is currently studying the unconventional monetary policies being employed by central banks in the wake of the global financial crisis, as well as their newer responsibilities for promoting financial stability. Sniderman came to Case after a career with the Federal Reserve Bank of Cleveland, culminating in his position as Executive Vice President and Chief Policy Officer. In that role, Sniderman served as principal adviser to the Bank president for economic and financial policy issues. As a senior executive officer, Sniderman had responsibilities for leadership of the Bank\u2019s economic research, public affairs, and community affairs departments; he also served on the Bank\u2019s management committee. Sniderman chaired the Bank\u2019s Senior Policy Committee and was a member of its Credit Risk Management Committee. During his Federal Reserve career, Sniderman attended more than 100 meetings of the Federal Open Market Committee, the Fed\u2019s monetary policy body; and spoke frequently to public audiences about the economic conditions and monetary policy issues. Sniderman continues to speak on these topics to a variety of business and professional audiences.<\/span><\/p>\n

Schedule of Friday Lunch Upcoming Topics and Speakers:<\/strong><\/p>\n

March 25: Covid-19 Through Covid-22: The More Things Change the More They Stay the Same?<\/strong>\u00a0Wtih\u00a0Mark Cameron, Ph.D.<\/strong>, Associate Professor of Population and Quantitative Health Sciences.<\/p>\n

April 1: The French Presidential Election.<\/strong>\u00a0Wtih\u00a0Patrick Chamorel, Ph.D.<\/strong>, Senior Resident Scholar and Lecturer, Stanford in Washington, Stanford University.<\/p>\n

April 8: Greening the Grid: The Energy Storage Challenge.<\/strong>\u00a0With\u00a0Robert F. Savinell, Ph.D<\/strong>, Distinguished University Professor and George S. Dively Professor of Chemical Engineering.<\/p>\n

April 15: TBA<\/strong><\/p>\n

April 22: The Present and Future of Cryptocurrency.<\/strong>\u00a0With\u00a0Peter Zimmerman, Ph.D.<\/strong>, Research Economist, Federal Reserve Bank of Cleveland.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Visit the\u00a0Public Affairs Discussion Group Web Site.<\/span><\/a><\/p>\n

Center for Policy Studies | Mather House 111 | 11201 Euclid Avenue |
\nCleveland, Ohio 44106-7109 |\u00a0Phone: 216.368.6730 |\u00a0padg@case.edu<\/u><\/span><\/a>\u00a0|
\nPart of the:\u00a0College of Arts and Sciences<\/u><\/span><\/a><\/p>\n

\u00a9 2022 Case Western Reserve University |
\nCleveland, Ohio 44106 | 216.368.2000 |\u00a0legal notice<\/u><\/span><\/a><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Center for Policy Studies
\nPublic Affairs Discussion Group<\/strong><\/p>\n

Inflation<\/strong><\/p>\n

Mark Sniderman, Ph.D. – Executive in Residence and Adjunct Professor of Economics, Weatherhead School of Management; former Executive Vice President, Federal Reserve Bank of Cleveland<\/strong><\/p>\n

Friday March 18, 2022
\n12:30-1:30 p.m.
\nOnline Zoom Meeting<\/strong><\/p>\n

Dear Colleagues:<\/p>\n

On March 11, the print edition of the\u00a0New York Times<\/em>\u00a0headlined that, \u201cInflation Rises At Fastest Clip in 4 Decades<\/a>, based on February economic data. Then, the\u00a0Sunday Times<\/em>\u00a0ran a long article\u00a0(originally online March 9<\/a>) titled,<\/p>\n

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