Tuesday, January 04, 2022

2021 Economy Not Bad

 Again, via Krugman.

although nobody seemed to notice, it was a year of spectacular economic recovery — and one in which many dire warnings failed to come true.

Unemployment has come back down

Supply chain problems didn't have big impact on holiday purchases.

No reason for inflation not to abate in 2022.

If inflation does come down, 2021 will look in the rearview mirror like an unambiguous success story, a tale of an economy that powered through temporary bottlenecks and rapidly returned to full employment.

Obviously that’s not the only possible outcome — and for a variety of reasons, which I’ll probably talk about in the next newsletter, it will be quite a few months before we’ll have a clear picture on the inflation front.

But one thing is clear: 2021 was a banner year for economic recovery. And people should know that.


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