Deficits and inflation: a longer historical overview

Michael Bordo and Mickey D. Levy write,

the initial response combined aspects of the policy response in several overlapping crisis scenarios in the past: World Wars I and II, the Great Depression, and the Global Financial Crisis (Bordo, Levin and Levy 2020). These earlier episodes of induced fiscal and monetary expansion in the 1930s and the World Wars led to rising price levels and inflation. In this paper we survey the historical record for over two centuries on the connection between expansionary fiscal policy and inflation and find that fiscal deficits that are financed by monetary expansion tend to be inflationary.

Do not assume that the last ten years settle the issue of whether deficits are inflationary.