Read the following in the Seattle Times that links inflation, fiscal policy and globalization Talton, Jon (03/05/21)″Inflation isn′t the big risk, with economy′s recovery still uncertain.″ Seattle Times https://www.seattletimes.com/business/inflation-isnt-the-big-risk-with-economys-recovery-still-uncertain/ () (also attached) https://www.seattletimes.com/business/inflation-isnt-the-big-risk-with-economys-recovery-still-uncertain/ In response to the article and using the models from your textbook, 1. How are fears of inflation tied to President Biden′s $1.9 trillion stimulus package? In your answer, explain how additional spending dollars circulating in the economy can lead to a change in the price level. 2. Mary Daly, president of the San Francisco Federal Reserve Bank (our regional bank), sees inflation as being unlikely. Explain, in your own words, her reasons why. 3. What is the connection between inflation and increased globalization, as reference in the article? 4. After your initial post and before Wednesday, you will want to respond to a fellow students′ response. Please make sure to offer substantive feedback.
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