Kocherlakota: Infrastructure an Attractive Option

The video discusses the dual mandate of the Federal Reserve, focusing on inflation and employment. It highlights the low unemployment rate and the potential for labor force reentry, driven by infrastructure and economic policies. The discussion shifts to nominal GDP, comparing historical averages and exploring policies to stimulate growth. The importance of infrastructure investment is emphasized for productivity and demand. Finally, the video examines fiscal policy, budget deficits, and the implications of low interest rates on debt service costs, considering the long-term fiscal challenges facing the U.S. economy.

What role does infrastructure play in economic policy according to the discussion?

How does the text describe the fiscal challenges facing the country?