Pimco's Clarida: Fundamental Economic Changes Since 2007

The transcript discusses economic concerns, focusing on UK inflation and the Lucas critique's impact on policy-making. It highlights challenges faced by the Federal Reserve in a post-2007 economic landscape, emphasizing the limitations of historical data in predicting outcomes. The discussion extends to economic theories, including DSG and hysteresis, and predicts future challenges for the global economy, particularly in terms of fiscal stimulus and interest rate adjustments.

What is the current state of the economy as described in the text?

What challenges do central banks face in the next downturn?