Macro Musings with David Beckworth cover image

Ricardo Reis on the Macroeconomics of Financial Crises and the Recent Inflation Surge

Macro Musings with David Beckworth

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Macro Musings: A Crash Course on Crisis Macroeconomic Concepts

Ricardo Rice: I view it more as a reduced form relationship. It's reflecting some other third variable, which is aggregate demand. So aggregate demand can affect inflation, it can affect unemployment. And so your policy is moving aggregate demand towards some goal,. Maybe it affects unemployment, maybe it affects inflation.

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