Princeton's Blinder on the Future of Fed Leadership

The video discusses the concept of constrained discretion in monetary policy, highlighting inflation targeting and the Taylor rule as methods to guide central bankers. It examines the influence of Ben Bernanke and the fading importance of inflation during his tenure. The potential policy direction of Jay Powell, assuming his role as Fed chair, is analyzed, suggesting continuity with the Bernanke-Yellen tradition. The video also explores new macroeconomic ideas by Olivia Blunt and Joe Stiglitz, considering the impact of inequality on economic policies, including social, tax, and regulatory policies.

What is one method suggested to limit discretion in monetary policy?

• Inflation targeting

• Interest rate guessing

• Fiscal expansion

• Currency devaluation

Which economist is mentioned as leading the charge for new macroeconomic thinking?

• Paul Krugman

• Milton Friedman

• Olivia Blunt

• Alan Blinder

What is a major factor contributing to the rise in inequality over the last 30 years?

• Globalization

• Technological advancements

• Social policy

• Monetary policy

Which policy area is NOT mentioned as influencing inequality?

• Monetary policy

• Regulatory policy

• Tax policy

• Social policy

What aspect of the tax system is highlighted as important in the discussion of inequality?

• Its neutrality

• Its simplicity

• Its progressiveness

• Its complexity