Fed Should Target 'Stable' 3% or 4% Inflation: Nobel Laureate Romer

Fed Should Target 'Stable' 3% or 4% Inflation: Nobel Laureate Romer

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The transcript discusses the goal of achieving a 2% inflation rate and explores the possibility of targeting higher rates, such as 3% or 4%, as suggested by economists like Adam Posen and Olivier Blanchard. It addresses concerns about the potential for inflation to rise uncontrollably if higher targets are set. The speaker expresses a preference for stable inflation rates, suggesting that a stable 3% or 4% could be beneficial.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current inflation rate target discussed in the video?

1% to 1.5%

2% to 2.5%

3% to 3.5%

4% to 4.5%

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which economist is associated with the idea of targeting a 3% inflation rate?

Milton Friedman

John Maynard Keynes

Adam Posen

Olivier Blanchard

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What inflation rate did Olivier Blanchard discuss for a period?

2%

3%

4%

5%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential argument against targeting a higher inflation rate?

It might stabilize the economy too quickly.

It would decrease consumer spending.

It could lead to deflation.

It could escalate to even higher rates like 6% or more.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What stable inflation rate does the speaker suggest might be beneficial?

5%

2%

1%

3%