Quoted in the Long Island Press: Is There An Upside to Inflation?

The following excerpt is from an article by Claude Solnik that was published by the Long Island Press on January 18th, 2022. You can read the entire piece here.

“There are very few winners from inflation, because it can more broadly outpace any net fiscal gains that the average person would experience,” said Richard Murdocco, an adjunct professor focused on urban planning, land use and economic development at Stony Brook University’s Public Policy graduate program. “In general, any perceived rising tides in pricing due to inflation alone are artificial, because any additional dollars earned are simply watered down.”

…Inflation can be good news, depending on which side of a transaction you find yourself. It can push up home prices, while making houses more expensive to build. “Inflationary pressures make Long Island, which is already a challenging environment for builders, even more so thanks to increased costs of materials, labor, and debt,” Murdocco said.

…A weaker dollar makes U.S. products cheaper abroad, which can boost exports. If you owe money, the bill can become easier to pay as the dollar becomes weaker. “Holders of longer-term fixed-rate debts, such as a 30-year mortgage, may benefit in a very limited fashion,” Murdocco added.

…“For policymakers, the challenge will be blunting the impacts of inflation while at the same time maintaining private sector investment and public environmental protections,” Murdocco said. “While the localities are currently flush with cash from the federal government, this money won’t last forever.”

You can read the rest of the piece from Solnik here.