The Fed's Inflation Challenge

The video discusses the divergence between inflation expectations and actual inflation, exploring theories on why this occurs. It examines the challenges central banks face in inflation targeting, especially in low inflation environments. The discussion includes alternative theories by economists like Janet Yellen's husband and the impact of low interest rates on market dynamics and inflation.

In what ways might the Fed's inflation targeting framework be questioned in a low inflation environment?

What role do demographics play in influencing inflation in the US and Europe?