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4min chapter
Joseph Wang & William White: Mammoth Interest Rate Hikes Are Causing Trouble In Sovereign Debt
Forward Guidance
The Importance of Supply Side Issues in Policymaking
The central banks underestimated the importance of supply side factors leading up to the Great Moderation. Since then, they've continued to implications of supply side problems. I think a lot of there's a big psychological component to economics and policymaking. So right now the Fed is talking about moderating. But if we're right about they're being less supply in the future, that there are actually real resource constraints, then one way that the policy merit occurs can allocate these scarce resources is through higher real rates.
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