The most startling and challenging aspect of the coved almost two years now, is that prices didn't rise at the retail level. We don't have shortages in the united states unless there's legislation against prices rising. And yet, what we've had until the last few months inthe last year, is lots of shortages, prices not rising and no inflation. What are your thoughts on them? Well, i think the the system in aterr was a terrible hit, but the system was working pretty well. The idea of going into a store and not being able to find meat or toilet paper isis what happens under communism. But it seems to me, you always have the supply side
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.