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“It was assumed, even only a decade ago, that the Fed could not just print money with abandon. It was assumed that the government could not rack up huge debt without spurring inflation and crippling debt payment costs. Both of these concerns have been thrown out the window by large numbers of thinkers. We’ve seen years of high debt and loose monetary policy, but inflation has not come.

So the restraints have been cast aside.”

– David Brooks, New York Times, Joe Biden Is A Transformational President (my emphasis)

Regardless of whether you agree with Brooks’ politics, he makes an incredibly bold statement. Massive amounts of monetary and fiscal stimulus can be employed with no consequences or restraints.

This naïve mindset is not just Brooks’ but represents a rapidly growing school of thought among economists, politicians, and central bankers. They all want unicorn-like solutions to what ails us, but the truth, grounded in history, is no such thing exists.

Since Brooks shrugs off any consequences of aggressive monetary and fiscal policy, I bring them to the forefront.