Will Prices Increase Once Businesses Reopen?

It is hard to say with any certainty, though my best guess would be no in the short run and probably in the long-run. In the short-run, say, five to 18 months, the aggregated price level will likely experience very little inflation. The long run, however, might be a different story, especially with healthcare. Price … Continue reading Will Prices Increase Once Businesses Reopen?

Making Sense of Nominal GDP Targeting

Jerome Powell replaced Janet Yellen as the new Chairman of the Federal Reserve.  This change will give the Fed a chance to reconsider how it conducts monetary policy.  There had been a consensus among macroeconomists since the 1980s, but like many things, it was shattered by the Great Recession.  One alternative for the new Fed … Continue reading Making Sense of Nominal GDP Targeting