Articles
Immaculate Disinflation
Today I’m going to talk about immaculate disinflation — lower inflation without recession.
November 11, 2026
In the Q&A section, Ramey considers when fiscal stimulus may be justified, why some COVID-era spending went too far, and which policy tools can produce the strongest short-run effects. The discussion underscores a basic constraint: stimulus must be judged not only by what government spends, but by the economic gain it produces relative to the debt it leaves behind.
In the Q&A section, the focus shifts to how fiscal policy should be used when policymakers decide stimulus is necessary. Ramey discusses the limits of COVID-era payments, the difficulty of timing infrastructure spending, and why direct government purchases can produce a larger short-run effect than temporary transfers. She also considers temporary tax reductions that encourage households to move purchases forward. Across these approaches, the same constraint remains: stimulus works only if it arrives at the right time and generates enough economic activity to justify the additional debt.
Valerie Ramey
Articles
Today I’m going to talk about immaculate disinflation — lower inflation without recession.
November 11, 2026
Articles
Nontariff measures—protectionism by another name—quietly interfere with open markets. America and the world should take them on.
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The United States produces very few ships. China produces many. Why?
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