The Macroeconomic Impact of the Amazon-Whole Foods Deal

The video discusses the potential impact of Amazon and similar firms on inflation rates, particularly in the food retail industry. It explores how competition can drive down prices and affect real income. The discussion includes historical context, comparing current trends to the 1990s, and questions the validity of traditional economic models like the Phillips curve. The video also examines whether structural changes in the economy necessitate a reevaluation of these models.

What questions are raised regarding the Fed's core model in light of recent inflation data?

What does the Phillips curve indicate about the relationship between unemployment and inflation?