Due to an unprecedented mix of expansionary fiscal and monetary policies between the first quarter of 2020 and the fourth quarter of 2021, the U. S. economy has entered a wage and price spiral, the likes of which we haven’t seen in decades. The rate of change in the M2 money supply (cash and near-cash) rose from the historical average of 7% to 17%. In the same period, the average quarterly change in total government spending jumped by an unprecedented rate of 27%. The combination of expansionary monetary and fiscal policy has led to the highest rate of inflation in four ...

From Issue: Strategy-Driven S&OP For Greater Business Value
(Spring 2022)

U.S. Economy is Heating Up — Fed Faces Challenge of Managing a Soft Landing