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Inflation, Central Banks, and Economic Theories
This chapter explores the evolution of economic theories at the Federal Reserve, from neo-monetarist to neo-Keynesian frameworks, and their relevance in today's economy. Discussions include Chairman Powell's stance on growth and inflation, the challenge of achieving a soft economic landing, and the Fed's cautious approach to monetary policy near the zero bound. Additionally, the chapter delves into the impact of stimulus measures on inflation, the relationship between wars and inflation, and the significance of oil prices on inflation and the Fed's policy outlook.