We want monetary policy to be a little bit contractionary, when instead it's actually quite expansionary. And that is likely to lead to higher rates of inflation in the future. Yo, the only acan said i not nargu argue. Lessin expansiony, maybe yes. Other that's lesse, too much stimulus. Just normal should be. Tso i go back. We used to have this term, the great moderation. It referred to a good montae policy ind no, late eighties and nineties into just the early of the century. The so called taler rule was right on. I wasn't complaining. Didn't write much about it, but it
What's so bad about rising inflation? Why should we aim for a rate of 2 percent? Why is it a problem if interest rates are too low--and what do we mean by inflation, anyway? Stanford University's John Taylor talks with EconTalk host Russ Roberts about these questions, the Taylor Rule, why inflation is rising, and what the Fed should do about it. At the end of the conversation, Taylor discusses whether stimulus stimulates and the dangers of the national debt.