Is economics education fit for the 21st century?(rethinkeconomics.org)

    Now the first step towards understanding the cause of inflation is to
    recognize that it is always and everywhere a monetary phenomenon. It's
    always and everywhere a result of too much money - of a more rapid
    increase in the quantity of money than in output. [...] inflation in the
    United States is made in Washington and nowhere else. [...] We have
    evidence for the United States for over a hundred years; for Great Britain,
    for two hundred years; for Sweden, for two hundred years. There has never
    in history been an inflation that was not accompanied by an extremely rapid
    increase in the quantity of money. There has never in history been an
    extremely rapid increase in the quantity of money without an inflation.

    [...] we have no compelling theory of inflation dynamics
    that would allow us to understand the Phillips
    correlation — or the historical shifts in the Phillips
    curve — on anything like a deep level,” he writes.

    What this means is that we also have no good way to
    explain the two most important changes to the inflation
    process that have taken place over the past fifty years;
    namely, the near-constancy of inflation’s stochastic
    trend after the mid-1990s, and the reduced sensitivity
    of price inflation to real activity.

    The fact that “we simply don’t know what caused the U.S.
    economy to transition into an inflation regime” like the
    one of 2021 and 2022 [...]

    What all this implies is that we simply don’t know what
    caused the US economy to transition into an inflation
    regime where inflation became a mean-reverting process
    and the price Phillips curve flattened.