Rising food and oil prices combined with billions of stimulus dollars injected into the economy look like a recipe for high inflation. Will the government be able to use its tools to combat soaring prices? Or has the problem grown so great that a long run of high inflation is inevitable?
Kiplinger’s offers our own outlook. But we’ve also enlisted other experts to share their opinions on the matter.
No Serious Inflation Worries
MICHAEL DUEKER, the chief economist of Russell Investments and a former research economist at the Federal Reserve Bank of St. Louis, says, "The near-term risk of a long, damaging spell of inflation in the U.S. remains low." Read Prolonged Inflation Is Not in the Cards for his detailed explanation.
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Fair Inflation Fears
Economist MARK ZUPAN, dean of the Simon Graduate School of Business, University of Rochester, says, "Our nation is flirting with resurrecting inflation to levels that are reminiscent of the grim 1970s." See more of his reasoning in Stimulus Is a Recipe for Inflation.
Other inflation thoughts around Kiplinger.com:
• PRACTICAL ECONOMICS: Bernanke Taking His Case to the People
• Higher Commodity Prices Warn of Inflation
• VALUE ADDED: Disaster in Japan Raises Odds of Double-Dip Recession
What’s your take? Please join the discussion about inflation on our Facebook page or in the comment box below.