Capital Link's Parpart on Central Bank Rates, Inflation

The video discusses the potential for interest rate hikes in 2018 and the impact on the global economy. It critiques the use of the Phillips Curve and highlights the importance of the NAIRU concept. The discussion includes insights from Nobel Prize winner Edmund Phelps on labor market dynamics, emphasizing that inflation does not necessarily rise with lower unemployment. The video also examines global economic trends, including central bank policies in Asia and Europe, and the potential effects on savings and quantitative easing.

What economic theory is mentioned as being outdated since 1977?

• Monetarism

• Supply-Side Economics

• Phillips Curve

• Keynesian Economics

What does the non-accelerating inflation rate of unemployment (NAIRU) suggest?

• Inflation rises with high unemployment

• Inflation does not rise with low unemployment

• Inflation decreases with low unemployment

• Inflation is unaffected by unemployment

According to Edmund Phelps, what is a significant factor affecting the labor market?

• Government policies

• Globalization

• Interest rates

• Technological advancements

What is a potential reason for interest rates to rise in Europe?

• High inflation

• Economic growth

• Currency devaluation

• Punishment of savings

What effect does a reduction in quantitative easing have?

• Increases inflation

• Lowers interest rates

• Boosts economic growth

• Tightens monetary policy