Inflation 'Growing Pains' Are Transitory: Economist Kelton

The video discusses the current state of inflation, debating whether it is transitory or permanent. It examines the economic recovery from the pandemic, highlighting supply chain issues and idiosyncratic pressures. The discussion shifts to fiscal policy, questioning the impact of additional spending and stimulus. Finally, it explores infrastructure investment, focusing on strengthening the social safety net and addressing long-standing policy deficits.

What does the speaker mean by 'transitory' inflation, and how does it differ from entrenched inflation?

In what ways does the speaker suggest that government spending could strengthen the economy?