The purpose of stimulus was to prevent those from looking even worse and causing more permanent damage to the economy. In that regard it's been a huge success; somewhere above, Keynes is smiling. In exchange for that we've got only 5%ish inflation, driven partly by a newly-tight labour market in which people can actually negotiate incomes upward, and partly by a big spike in natural gas prices? I would absolutely take it. (Roughly the same pattern is seen in the UK, and most of Europe; I'm not sure how well it applies to emerging economies)
There are two standard remedies for inflation: monetary tightening (raise interest rates) and fiscal tightening (raise taxes). Both of those operate on inflation by pushing unemployment back up and reducing the amount of money chasing goods. Both are eminently feasible if action is needed against inflation.
And its not-quite-mirror, labor force participation: https://www.bls.gov/charts/employment-situation/civilian-lab...
The purpose of stimulus was to prevent those from looking even worse and causing more permanent damage to the economy. In that regard it's been a huge success; somewhere above, Keynes is smiling. In exchange for that we've got only 5%ish inflation, driven partly by a newly-tight labour market in which people can actually negotiate incomes upward, and partly by a big spike in natural gas prices? I would absolutely take it. (Roughly the same pattern is seen in the UK, and most of Europe; I'm not sure how well it applies to emerging economies)
There are two standard remedies for inflation: monetary tightening (raise interest rates) and fiscal tightening (raise taxes). Both of those operate on inflation by pushing unemployment back up and reducing the amount of money chasing goods. Both are eminently feasible if action is needed against inflation.