Ex-BOE Policy Maker Forbes Urges a Rethink of Inflation Models

The transcript discusses the need to rethink how inflation is measured, suggesting that current models overpredict inflation due to a narrow focus on domestic factors. It emphasizes the importance of considering global economic integration. The discussion also covers the lack of a precise natural rate of unemployment (Nehru) and the need for broader economic indicators. The conversation touches on monetary policy, suggesting a focus on core inflation rather than temporary spikes, and addresses concerns about asset bubbles, advocating for macro prudential policies.

What does the speaker imply about the relationship between unemployment and inflation?

What concerns does the speaker raise regarding accommodative monetary policy?