Tuesday, 26 September 2023 11:21 GMT

Professor of macroeconomics accuses Biden government of benefiting from inflation

(MENAFN) Ceyhun Elgin, a professor of macroeconomics at Bogazici University in Istanbul, informed Anadolu Agency that "Using a code name like the inflation reduction act is more like a political labelling of the set of policies associated with the proposal of the Biden administration."

Inflation is extremely not relevant in the US currently, he stated, in dispute that the Biden government "wanted to benefit from this by relating this proposal to reducing inflation."

He highlighted that the offer includes many procedures to back environmentally friendly local investment in the US as well as funding it by raising taxes on companies.

Ceyhun stated that "I believe it will not immediately decrease inflation. However, it may make the US economy less dependent on international energy prices in the long run."

Adding "Since the tax increases are expected to be more than the increased spending on investment subsidies, the act will also reduce the US budget deficit and may have a small reductionary effect on inflation through that channel."


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