GZERO World Clips
How economist Larry Summers predicted US inflation
How Economist Larry Summers Predicted US Inflation | GZERO World
November 22, 2021
Back in February, Larry Summers was sounding the alarm bell about inflation when no one was talking about it.
"It seemed obvious to me that we were gonna have massive demand, and we weren't gonna have such large supply."
So why didn't anyone listen to him? Summers says that "cognitive biases" led many to ignore the inflation warning signs because they thought struggling families needed help, or believed that inflation was simply gone for good.
Part of the reason prices are rising so much today, Summers says, is because the Biden administration made the political decision to do "too much stimulus," a big mistake in his view.
Watch this episode of GZERO World with Ian Bremmer: Inflation nation: What's driving US prices higher?
Subscribe to GZERO on YouTube to be the first to see new episodes of GZERO World with Ian Bremmer: https://bit.ly/2TxCVnY
More For You
Participants hold placards during a protest to condemn the U.S. and Israeli attacks on Iran and commemorate students killed in a strike on a girls' primary school in Minab in southern Iran on February 28, in front of the U.S. embassy in Seoul, South Korea, March 12, 2026.
REUTERS/Kim Soo-hyeon
175: The number of people killed at an Iranian girls’ school in a strike on Feb. 28. Initial intelligence reports suggest that the US was to blame for the strike, per the New York Times, after the military used a now-defunct set of coordinates to deploy the hit.
Most Popular
Strong communities start with opportunity. Bank of America invested nearly $40 million in workforce development programs in 2025 — helping 86,400 people connect to jobs, and 264,000 build new skills that strengthen local economies. Explore how Bank of America is building the workforce of today and tomorrow.
Chris, an Army veteran, started his Walmart journey over 25 years ago as an hourly associate. Today, he manages a Distribution Center and serves as a mentor, helping others navigate their own paths to success. At Walmart, associates have the opportunity to take advantage of the pathways, perks, and pay that come with the job — with or without a college degree. In fact, more than 75% of Walmart management started as hourly associates. Learn more about how over 130,000 associates were promoted into roles of greater responsibility and higher pay in FY25.
© 2025 GZERO Media. All Rights Reserved | A Eurasia Group media company.