Inflation Risk is the Wrong Recession Lesson

Inflation Risk is the Wrong Recession Lesson

From Optimist Economy by Kathryn Anne Edwards and Robin Rauzi

June 16, 2026 · 50 min · Season 2 · Episode 21

About this episode

The episode discusses the misconceptions surrounding inflation and government stimulus during the COVID-19 pandemic and emphasizes the importance of recognizing the economic recovery that followed.

This might be the most dangerous economic assertion circulating today: the high inflation from 2021-2023 was caused by government stimulus. The talking point on the right goes: the third COVID-era stimulus checks landed in March 2021, prices took off, case closed. Of course reality is more nuanced. And most serious estimates pin only a point or two of the inflation peak on the bill; the rest was supply chain chaos, a global chip shortage, and the Ukraine war. The pandemic caused the worst job loss on record — and the response produced the fastest labor-market recovery we've ever had, because policymakers went big. The danger is that they remember the inflation and forget the recovery. Chapters : 00:01:14 Announcements 00:03:24 Retcon: Q1 GDP Revised 00:04:50 Terms & Conditions: Output Gap, NAIRU, "The Long Depression" 00:11:49 Big Pilcrow: Is Recession Recovery Getting Blamed for Inflation? 00:42:14 Executive Orders: Parallel parking licenses, FIFA ticketing ban 00:45:52 Spiritual Sponsors: Small hardware stores, handwritten letter to OE Support Optimist Economy: https://optimisteconomy.com/donate Video-curious? Watch the Optimist Economy YouTube channel⁠⁠ . We’re also on…

People in this episode

Hosts: Kathryn Anne Edwards, Robin Rauzi

Topics covered

Mentioned in this episode

Organizations: Optimist Economy

Places: Ukraine

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