13 - Joseph Gagnon on Quantitative Easing in the United States and Abroad
Macro Musings with David Beckworth
00:00
Is There a Zero Loer Bound Trap?
Ma kimball has argued for a novel approach where you you allow the exchange rate between deposit electronic money and cash to fluctuate. We used to think two was good, but i looked at some of the papers that justified te target of two, and they all say that the zero bounds not going to be a problem. So it's interesting as an economist to think this is money illusion at work. Ti is all pushing me towards that we need more inflation. We probably need three or four % inflation.
Transcript
Play full episode
