Is the Economy Resilient?

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Russ: The resilience of the economy is just quite terrific. People are working at home rather than goin to the office, but you're actually doing a lot of work. I would also say there's thes high tech firms. There's an amazing inability for people to supplement. And i thinkw we've seen the economy bounce back because people are finding other ways to do their work otherwise to commute.

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.