In Economic Theory Folklore Inflation Is Caused by Low Unemployment, Not Fast Growth

Neil Irwin has a discussion of the growth potential of the U.S. economy that follows the work of two JP Morgan economists. The basic story is quite pessimistic, arguing that we will see rapid declines in labor force participation and much slower productivity growth in the future. I won't comment on these points at length here (the evidence presented is limited in the piece and weak), but will rather focus on the conclusion.

The piece ends by warning readers:

"And if the analysis is right, and...