Fed's Bullard Says Credibility of Inflation-Targeting Is at Risk

The video discusses the serious inflation problem in the US, comparing current levels to those of the 1970s and early 1980s. It highlights the risks to the credibility of the inflation targeting regime and the economic volatility experienced during that era, including multiple recessions and high unemployment. The importance of responding appropriately to avoid repeating past mistakes is emphasized.

What is the main concern regarding inflation in the US as discussed in the video?

• The inflation rate is too low.

• The inflation rate is stable.

• The inflation rate is similar to the 1970s and 1980s.

• The inflation rate is decreasing.

What characterized the economic situation in the 1970s?

• Stable inflation and economy

• High employment rates

• Volatile inflation and economy

• No recessions

How many recessions occurred in the 13 years leading up to 1982?

• Two

• Three

• Four

• Five

What was the peak unemployment rate during the 1982 recession?

• 12.0%

• 10.8%

• 9.5%

• 8.5%

Why is it important to respond appropriately to the current inflation problem?

• To increase inflation rates

• To avoid repeating the economic volatility of the 1970s

• To decrease employment rates

• To stabilize the stock market