
The Economic "Trilemma" - with Mohamed El-Erian
Call Me Back - with Dan Senor
00:00
How to Lower Inflation Without Undue Damage to Economic Growth
When the Fed is late and the Federal Reserve is very late this time around in reacting to inflation, it tends to overreact and tip the economy into recession. We had an example of that in the United Kingdom where I am right now. There was a sudden increase in market interest rates because of unfunded fiscal announcements by the government. And next thing we know, the pension system almost collapsed. The dilemma is how do you lower inflation without undue damage to economic growth, to jobs, and to well-being? That's the dilemma.
Transcript
Play full episode