Inflation, Debt, and The Fed (Part 1) with Scott Sumner and Lyn Alden
Village Global Podcast
00:00
The Fed's Choice in Controlling Inflation
The question of weather we'll have high inflation will hinge on things that haven't really been decided yet. The choice faced by the fed is, how do they control monetary policy such that when things get back to normal, all this increased money supply doesn't spill over into higher inflation? So as long as financial market forecasts are that inflation will remain relatively low going forward, i'm not too concerned about the current stamps of monetary policy. But if inflation does start pick up in a persistent way, and the fed refuses to act, loses credibility with the markets, then we're back to the 19 sixties and seventies.
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