The economic consequences of high inflation are already bad enough.
But for Larry Summers, sometimes the psychological trauma that comes with it can do even more damage to a society.
"A society where inflation is accelerating is a society that feels out of control."
When wages rise at the same rate as prices do, he says, they feel like inflation is robbing them of the fruits of their labor — even if rising prices is the main reason people are getting a raise in the first place.
"We all tend to internalize the good and externalize the bad."
To deal with inflation, the former US treasury secretary says the Federal Reserve must admit it misjudged the problem, and for President Joe Biden to acknowledge that too when he nominates people to the Fed board.
Watch this episode of GZERO World with Ian Bremmer: Inflation nation: What's driving US prices higher?
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