Fed's Bullard Says Credibility of Inflation-Targeting Is at Risk

The video discusses the serious inflation problem in the US, comparing current levels to those of the 1970s and early 1980s. It highlights the risks to the credibility of the inflation targeting regime and the economic volatility experienced during that era, including multiple recessions and high unemployment. The importance of responding appropriately to avoid repeating past mistakes is emphasized.

What are the implications of missing the inflation target in the US?

How do the inflation levels today compare to those in the 1970s and early 1980s?

What were the economic conditions during the 1970s that contributed to high inflation?

What lessons can be learned from the recessions of the 1970s and 1980s?

Why is it important to respond appropriately to the current inflation problem?