Ex-RBI Chief Rajan Says Fed Is Making an Important Shift

The transcript discusses Jay Powell's speech on flexible average inflation targeting and its implications for central banks, especially in emerging markets. It highlights the Fed's accommodative stance, the global phenomenon of low inflation, and the challenges faced by emerging markets. The discussion also covers potential future economic scenarios, including high debt levels and inequality exacerbated by the pandemic.

What are the three important points mentioned by Jay Powell regarding monetary policy?

How does the Fed's approach to inflation targeting differ from previous practices?

What does maximum employment mean in the context of the Fed's new policy framework?

How might the Fed's focus on inflation expectations impact the overall economy?

What implications does the Fed's policy have for emerging market central banks?

Discuss the potential consequences of high levels of debt in the post-pandemic world.

In what ways has the pandemic exacerbated existing inequalities?