Macro Musings with David Beckworth cover image

Ricardo Reis on the Macroeconomics of Financial Crises and the Recent Inflation Surge

Macro Musings with David Beckworth

00:00

The Fed's Reassessment of R-Star

R-Star, that is the real return, plus expected inflation. It's crucial therefore to anchor it near the inflation target of two percent. The last 20 years what they had seen was a very large wedge between those two measures. And if you asked me 12 months ago, I would say that pie star would have been as high as 3%.

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