Fed's Fischer: There's a Strong Case to Raise Rates

The video discusses the concept of the equilibrium real rate, which has significantly decreased, affecting the ability to use expansionary monetary policy without causing inflation. It explores the challenges in estimating 'R Star', the real rate at full employment, and highlights the consensus among the Open Market Committee members on its lower estimates. The discussion emphasizes the implications of these estimates on monetary policy and economic stability.

What is the significance of the standard deviation mentioned in relation to the estimates of 'our star'?

Discuss the relationship between interest rates and inflation as mentioned in the text.