Fed's Kaplan Sees Technology Enabled Disruption

The video discusses the global challenge of boosting inflation despite strong growth and tight labor markets, highlighting that this issue is not limited to the US. It explores structural forces like globalization and technology disruption, which are dampening price pressures. The video also examines demographic trends, such as aging populations and slowing workforce growth, affecting GDP. It suggests that the natural rate of unemployment may be lower due to these structural factors and emphasizes the importance of immigration and skills training to counteract these trends.

What are the two main structural factors mentioned that are affecting inflation dynamics?

• Government policies and interest rates

• Cyclical economic forces and wage pressure

• Globalization and technological disruption

• Consumer spending and investment

How does technological advancement impact businesses according to the video?

• It increases their pricing power

• It replaces old business models and reduces pricing power

• It leads to higher employment rates

• It causes inflation to rise

What is a potential consequence of the structural changes discussed in the video?

• Lower natural rate of unemployment

• Decreased technological disruption

• Higher natural rate of unemployment

• Increased inflation rates

What common demographic trend is affecting GDP growth in Japan and the Western world?

• Decreasing life expectancy

• Increasing birth rates

• Aging populations and slowing workforce growth

• Rising immigration rates

Which of the following is NOT mentioned as a way to grow the workforce?

• Reducing retirement age

• Immigration

• Increasing female workforce participation

• Skills training