Fed's Kaplan Says He's Not 'Rigid' on Fed's Path to Neutral Rates

The video discusses the concept of the neutral rate, its estimation, and the economic factors influencing it. The speaker emphasizes the importance of not being rigid in policy decisions, considering GDP growth, fiscal stimulus, and challenges like workforce aging and productivity. The need for a balanced approach to economic policy is highlighted.

What is the range of the neutral rate as discussed by the speaker?

• 4% to 5%

• 2.5% to 3%

• 3% to 4%

• 1% to 2%

Why does the speaker emphasize not being rigid in policy decisions?

• Because the economy is always stable

• Due to the unpredictability of economic growth

• Due to the certainty of the neutral rate

• Because fiscal stimulus is increasing

What are the anticipated challenges for economic growth in 2019 and 2020?

• Increasing workforce growth

• Slowing workforce growth and sluggish productivity

• Decreasing GDP growth

• Rising fiscal stimulus

What does the speaker suggest is necessary for balancing economic factors?

• A rigid approach

• An open mind

• Prejudgment

• Ignoring economic changes

What is the speaker's approach to making economic judgments?

• Ignoring economic indicators

• Adapting as the economic path unfolds

• Following a predetermined path

• Prejudging the outcomes