Yellen Says There Are No Plans to Change Inflation Goal

The video discusses the current economic opinions and the FOMC's stance on inflation. It highlights global economic trends, such as slow productivity growth and aging populations, affecting aggregate demand. The discussion covers how low equilibrium real interest rates influence short-term interest rates and the potential role of higher inflation in monetary policy. The video concludes with an analysis of the costs and benefits of higher inflation, emphasizing the need for careful consideration.

What factors are contributing to the current economic discussions among economists?

How does slow productivity growth affect aggregate demand according to the text?

In what ways might higher inflation impact monetary policy according to the discussion?

What are the potential costs of a higher level of inflation mentioned in the text?

What considerations did the committee take into account when adopting a 2% inflation target?