Inflation Dilemma: Fed Policies Under Scrutiny

This chapter critically examines the Federal Reserve's economic policies, questioning their effectiveness in preventing bubble conditions while sustaining growth. The discussion covers the implications of running an economy 'hot', the normalization of emergency measures, and the evolving perspectives on monetary policy and inflation. Through a historical lens, they explore supply constraints and the reluctance of economic theories to adapt, ultimately scrutinizing the Fed's dual mandate of employment and price stability.