Hatzius: Inflation Is Difficult to Measure at This Moment

The transcript discusses the current disinflationary period and the potential for deflation, examining how the Federal Reserve might respond. It highlights the challenges in measuring inflation due to economic disruptions, such as the inability to price certain services. The outlook for inflation post-crisis is considered, with expectations of continued slack in the labor market and economy, which may keep inflation below target. The transcript also touches on the possibility of financial market bubbles due to economic interventions, though the current focus remains on stabilization and recovery.

What is the current economic period described in the video?

• Stagflationary

• Disinflationary

• Deflationary

• Inflationary

Why is inflation difficult to measure in the current environment?

• Prices are stable across all sectors

• There is a lack of data collection

• The economic environment is highly disrupted

• Inflation is not being tracked by the government

What is expected to weigh on inflation post-crisis?

• Increased consumer spending

• High demand for goods

• Slack in the labor market

• Rising oil prices

What is the main focus of the current economic policy?

• Reducing taxes

• Stabilization and normalization

• Promoting exports

• Increasing interest rates

What potential issue is mentioned regarding financial markets?

• Decreasing stock prices

• High interest rates

• Lack of investment opportunities

• A possible bubble forming