Repeat after me…

In Keynesian economics, “running the economy hot” boosts employment by lowering the real wage.

In Lucasian economics, “running the economy hot” boosts employment by fooling people into thinking that real wages are higher, when they are not.

In #thegreatforgetting economics, “running the economy hot” boosts employment and real wages by…boosting employment and real wages.

It is actually the much-maligned supply-side economics that, at least in principle, makes sense here.