13min chapter

"Econ 102" with Noah Smith and Erik Torenberg cover image

How the Fed Works, Currency Crises, and TikTok ban [Listener Mailbag]

"Econ 102" with Noah Smith and Erik Torenberg

CHAPTER

Exploring Greedflation and Interest Rate Formulas

The chapter delves into the concept of 'greedflation' and how oligopoly level multinationals may contribute to inflationary pressures. It discusses the idea of setting interest rates based on inflation expectations over the next five years, highlighting the risks and potential impacts of such a formula on economic stability. The conversation also touches on NGDP targeting as an alternative to traditional inflation targeting, comparing different scenarios and discussing the complexities and implications of each approach.

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