America's factories were humming during World War II, churning out supplies for the military. After the war, as government spending faded and inflation spiked, macroeconomists were worried that the economy would stumble. Nearly eight decades later, a surge in prices during the U.S. economy's recovery from the pandemic has stoked similar fears.
What can we learn from the post-WWII period? Are we headed for economic stagnation, or even 1970s-style stagflation? Larry Summers discusses the economic outlook and implications for central bank policy.