Learning About Inflation and Communicating with Wider Audiences

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Learning About Inflation and Communicating with Wider Audiences
Article 1 Takeaway Summary
The article by Barnichon et al. explores critical information about the U.S. economy and the influence of federal activities in attempts to keep it afloat during the ongoing covid-19 pandemic. Discussions reveal the facts about the economic shocks that emerged immediately after the outbreak. They demonstrate the urgent need for the government to intervene and support its people through the various rescue plans. Through its exploration of diverse concepts, the article has brought fundamental learning about overheating risk degrees due to the 2021 American Rescue Plan (Barnichon et al.). It reveals that measuring this element using the unemployment rate and labor demand measures may not bring accurate results about the economic state during the current times. As a result, the authors elucidate the value of the vacancy-to-employment ratio because it considers the two metrics. It was impressive to learn from this article how this approach clarifies the American economy’s status, which one would easily misinterpret while using the initial techniques independently. It reveals that the American Rescue Plan employed by the federal administration may harm the economy rather than temper the shocks triggering a vacancy-to-unemployment ratio increase, leading to inflation. This outcome will harm the financial status of the Americans despite the early caution by initial interventions.
Article 2 Takeaway Summary
In their article, Glick et al. highlight the expected behavior of economic reactions after a crisis. The authors underscore how different forces interact to avert inflation during economic rebound, similar to the one recorded after the harsh effects of the coronavirus pandemic. Interacting with this article has been informative, especially in learning how inflation expectation occurs and its influence on the price changes (Glick et al. 2). The authors argue that a surge in commodity prices remains typical and unusual in such a scenario because it represents a reaction to the irregular forces of supply against the demand for critical production resources. When this event occurs, it triggers a consistent increase in...