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Like @JeffBooth, I believe the rate of inflation should be low (if not negative) when productivity growth is high. But the current crisis is a negative productivity shock if there ever was one. So this is no time to call for deflation, or to assume that low rates = bubble. 1/4 https://twitter.com/JeffBooth/status/1288586860365668352
Fed policies are certainly propping-up the prices of certain assets. But that's not the same as a policy stance that's keeping interest rates generally below their natural levels. We may yet see that; but it isn't evident that we're there. 2/4
Overly tight policy during an adverse supply shock can, on the other hand, be disastrous, by supplementing supply-side misery with inadequate demand. We don't make reduced output less painful by allowing earnings to shrink. Better to let stuff cost more. 3/4
The state of technology and productivity definitely should influence how the general price level evolves. But it's a two-way influence. Productivity gains should mean less inflation or even deflation; setbacks should mean the opposite. Alas, we're suffering a setback.
