Low interest rates mean banks can borrow money overnight, t at a very low cost. It means there's really too much stimulus in economya. Some are arguing they should be back. There's some dispute at the fet somemoy named taylor,. probably arguing that.
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.