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Krugman notes that the government's response to the pandemic, which included significant fiscal stimulus such as direct payments to individuals and increased unemployment benefits, resulted
Krugman notes that the government's response to the pandemic, which included significant fiscal stimulus such as direct payments to individuals and increased unemployment benefits, resulted in an increase in consumer spending. This was worsening by the fact that many people saved more during the lockdowns and were eager to spend once they were lifted. As consumers competed for a limited supply of goods and services, the sudden increase in demand put upward pressure on prices
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