Pandemic gives unexpected boost to productive investment

The sharp rise in US inflation in recent months suggests that the US economy is overheating and lacking production capacity. The industrial sector is experiencing record delivery delays and inventories are at particularly low levels. It is therefore reasonable to ask whether the economic policy is not too stimulating. In the decade preceding the pandemic, the concern was that the economy had become structurally weak and the remedy for this 'secular stagnation' was to pile on the ...