Nobel Laureate Phelps on Inflation and Fed Policy

The transcript discusses the complex relationship between unemployment and inflation, highlighting the lack of inflation despite low unemployment rates. It explores the impact of the financial crisis on worker behavior and firm anxieties. The discussion extends to central bank policies, questioning the 2% inflation target and the need for interest rate adjustments. The effects of globalization and digitization on productivity and inflation are examined, noting the limited impact of Silicon Valley on the broader economy. Finally, the transcript addresses future economic predictions, potential interest rate hikes, and the implications of tax reforms on deficits.

What is the relationship between globalization, digitization, and inflation according to the discussion?

What are the implications of stagnant productivity on wage growth and inflation?

What are the potential consequences of not raising tax rates on household income during a booming economy?