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John Taylor on Inflation, the Fed, and the Taylor Rule

EconTalk

CHAPTER

Navigating Interest Rates and Inflation

This chapter examines the Federal Reserve's unusual strategy of maintaining low interest rates in the face of rising inflation. It discusses the implications of this decision, historical precedents, and the relationship between interest rates, inflation, and economic growth through the lens of the Taylor Rule. The speakers emphasize the need for a measured approach to monetary policy to prevent severe economic repercussions while managing inflation effectively.

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