Rogoff Says 6% Fed Funds Rate Wouldn't Be a Surprise

The transcript discusses the debate over inflation targets, with figures like Blanchard, Stiglitz, and Adam Posen suggesting different levels. The conversation explores whether the 2% inflation target should be reset, considering political and economic factors. It highlights the political nature of economic decisions, especially in the context of deglobalization and the labor market's distortions. The discussion also touches on the uncertainty in setting interest rates and the potential for inflation to remain elevated longer than expected.

What was the initial inflation rate discussed by Blanchard and Stiglitz post GFC?

What level of inflation does Adam Posen suggest as appropriate?

What are the implications of changing the inflation target from 2% to a higher level?

How does the shift from Leo Brainard to the head of the Economic Council reflect the political nature of inflation decisions?

What are the potential consequences of allowing inflation to remain elevated for longer?