Peterson's Zettelmeyer on Inflation, German Infrastructure

The video discusses the role of central banks in managing inflation and interest rates. It highlights the need for inflation to be above current targets to make lowering rates effective. The discussion also covers the potential lower long-term costs of aggressive economic strategies and challenges the traditional view of the tradeoff between inflation and unemployment, suggesting that the Phillips Curve may still be relevant.

What are the potential long-term costs of pursuing an aggressive economic strategy according to the text?

What is the significance of the Phillips Curve in the context of the speaker's argument?