Ruskin: Pricing In Permanence to Expanded Balance Sheets

Professor Fisher discusses the implications of maintaining low interest rates and the potential permanence of expanded balance sheets. The conversation covers the challenges of tapering in Europe and Japan, the debate over inflation targeting, and the possibility of changing central bank mandates to focus more on growth and job creation. The discussion also highlights the differences between domestic and international inflation, emphasizing the impact of globalization on goods and services prices.

What are the implications of a permanent balance sheet expansion according to Professor Fisher?

How does the discussion of tapering relate to the potential for a market tantrum?

In what ways does the current economic environment challenge traditional inflation targeting?

What is the distinction made between domestic inflation and international goods inflation?

What factors contribute to the differences in inflation rates across countries as discussed in the text?