Was the Federal Reserve Wrong on Inflation?

The video discusses the ongoing debate about inflation, focusing on the Federal Reserve's monetary and regulatory policies since 2008-2009. It examines the impact of these policies on inflation, disinflation, and money supply growth. The discussion highlights the challenges in economic growth and investment, and explores the concept of asset inflation during economic recovery. The video also touches on international economic dynamics, such as Japan's currency strategy.

What major changes did the Fed implement in 2008-2009?

• Increase in interest rates

• Expansion of bank reserves and regulatory policies

• Deregulation of the banking sector

• Reduction of bank reserves

What is the primary reason for the disinflationary trend discussed in the video?

• High money growth

• Rising interest rates

• Muted M2 money supply growth

• Increased consumer spending

How have regulatory measures affected small businesses according to the video?

• Encouraged small business growth

• No impact on small businesses

• Reduced lending to small businesses

• Increased lending to small businesses

What could lead to future inflation as per the discussion?

• Reduction in the Fed's balance sheet

• Decrease in asset prices

• Increase in wage growth

• Fed allowing banks to leverage freely

What global event in 2012 positively impacted asset values?

• The recession of 2009

• The guarantee of the euro by Europe

• The increase in US interest rates

• The US tax bill of 2013