Hooper: Diminished Relevance of Economic Models

The video discusses the role of central banks and fiscal policy in controlling inflation, with a focus on Europe and Germany's political challenges. It examines the current state of monetary policy rates and the diminishing relevance of DSG models, highlighting their limitations, especially at the zero bound, and the underdeveloped financial sectors in these models.

What are the implications of low policy rates on economic growth?

How have traditional economic models failed to predict recent economic developments?