Summers: ‘There’s Going To Be an Element’ of ‘Stagflation’

LEMON Let me just ░░░░░░░░ give people a snapshot ░░░░░░░░ the moment that we ░░░░░░░░ in right now There ░░░░░░░░ a record high inflation ░░░░░░░░ prices is averaging 5 ░░░░░░░░ gallon the stock market ░░░░░░░░ tumbling into a bear ░░░░░░░░ Consumer goods are rising ░░░░░░░░ the fastest pace in ░░░░░░░░ decades That is really ░░░░░░░░ reality But you said ░░░░░░░░ are things that we ░░░░░░░░ do Larry and you ░░░░░░░░ including legislation and there ░░░░░░░░ things that the president ░░░░░░░░ actually do as well ░░░░░░░░ it s going to ░░░░░░░░ some time Listen when ░░░░░░░░ had you here in ░░░░░░░░ April we talked about ░░░░░░░░ when you were predicting ░░░░░░░░ And we talked about ░░░░░░░░ long it would possibly ░░░░░░░░ You said it s ░░░░░░░░ to inflation It s ░░░░░░░░ to be a while ░░░░░░░░ long are we going ░░░░░░░░ be with inflation this ░░░░░░░░ SUMMERS I would be ░░░░░░░░ d be very surprised ░░░░░░░░ we didn t still ░░░░░░░░ inflation at a meaningful ░░░░░░░░ a year from now ░░░░░░░░ may well come down ░░░░░░░░ think it s probably ░░░░░░░░ to come down from ░░░░░░░░ 8 percent plus range ░░░░░░░░ it s been at ░░░░░░░░ we re still going ░░░░░░░░ have inflation for quite ░░░░░░░░ time And we re ░░░░░░░░ going to have a ░░░░░░░░ economy as well so ░░░░░░░░ s going to be ░░░░░░░░ element of what people ░░░░░░░░ stagflation in our situation ░░░░░░░░ look Don what we ░░░░░░░░ to do as a ░░░░░░░░ is not shed tears ░░░░░░░░ where we are We ░░░░░░░░ to roll up our ░░░░░░░░ and address the problems ░░░░░░░░ that means doing things ░░░░░░░░ control demand to make ░░░░░░░░ more affordable by for ░░░░░░░░ by reducing pharmaceutical prices ░░░░░░░░ doing everything we can ░░░░░░░░ increase energy supplies by ░░░░░░░░ what we can with ░░░░░░░░ to maintaining the flow ░░░░░░░░ goods into the country ░░░░░░░░ getting rid of nonstrategic ░░░░░░░░ so we can bring ░░░░░░░░ prices And we need ░░░░░░░░ be patient and we ░░░░░░░░ to look beyond the ░░░░░░░░ term economic distress to ░░░░░░░░ the greatest economy that ░░░░░░░░ s ever been LEMON ░░░░░░░░ SUMMERS by strengthening our ░░░░░░░░ by taking account of ░░░░░░░░ remarkable technological progress that ░░░░░░░░ has been We can ░░░░░░░░ things It s not ░░░░░░░░ to be easy but ░░░░░░░░ know Don I spent ░░░░░░░░ lot of time traveling ░░░░░░░░ talking to economists from ░░░░░░░░ in other parts of ░░░░░░░░ world and I d ░░░░░░░░ have our challenges than ░░░░░░░░ challenges facing Europe or ░░░░░░░░ And I d rather ░░░░░░░░ almost anybody s challenges ░░░░░░░░ the challenges that are ░░░░░░░░ China right now with ░░░░░░░░ s happening with the ░░░░░░░░ lockdowns with all the ░░░░░░░░ problems with the average ░░░░░░░░ having only one child ░░░░░░░░ everything they re dealing ░░░░░░░░ in terms of real ░░░░░░░░ LEMON I got you ░░░░░░░░ understand listen crosstalk SUMMERS ░░░░░░░░ I think we need ░░░░░░░░ look forward LEMON I ░░░░░░░░ people are listen I ░░░░░░░░ people agree with that ░░░░░░░░ the question is you ░░░░░░░░ for most people and ░░░░░░░░ can certainly understand that ░░░░░░░░ s the immediate moment ░░░░░░░░ you you know it ░░░░░░░░ a challenge to buy ░░░░░░░░ to get to work ░░░░░░░░ it s a challenge ░░░░░░░░ get baby formula that ░░░░░░░░ all happening in the ░░░░░░░░ right now I must ░░░░░░░░ you about a recession ░░░░░░░░ on please SUMMERS Yes ░░░░░░░░ you re right Gasoline ░░░░░░░░ mostly about President Putin ░░░░░░░░ naked aggression And if ░░░░░░░░ want to not have ░░░░░░░░ kinds of problems again ░░░░░░░░ re going to have ░░░░░░░░ stand up firmly to ░░░░░░░░ naked aggression I did ░░░░░░░░ crosstalk LEMON But do ░░░░░░░░ see a recession in ░░░░░░░░ future SUMMERS that s ░░░░░░░░ is the way the ░░░░░░░░ alliance has stood together ░░░░░░░░ think we are likely ░░░░░░░░ have a recession I ░░░░░░░░ we have overheated the ░░░░░░░░ and gotten some bad ░░░░░░░░ When the pendulum swings ░░░░░░░░ far one way it ░░░░░░░░ to swing back the ░░░░░░░░ way So I think ░░░░░░░░ are likely to have ░░░░░░░░ recession sometime in the ░░░░░░░░ two years And we ░░░░░░░░ just going to need ░░░░░░░░ work through that recession ░░░░░░░░ it comes If we ░░░░░░░░ to avoid it and ░░░░░░░░ tried to not do ░░░░░░░░ that I think is ░░░░░░░░ very real risk that ░░░░░░░░ will return to an ░░░░░░░░ of inflation into an ░░░░░░░░ of inflation LEMON OK ░░░░░░░░ me ask you SUMMERS ░░░░░░░░ that would be a ░░░░░░░░ era LEMON I got ░░░░░░░░ ask you this before ░░░░░░░░ I have to go ░░░░░░░░ I have to I ░░░░░░░░ a lot to get ░░░░░░░░ here The stocks are ░░░░░░░░ again today.”