Thought that was a little unfair given that i havent given the panel advanced warning of that. Thats right. So im joined here by olivier now at the peterson institute. Loretta loretta mester. And paul krugman, the economist at City University of new york and columnist for the new york times. Krugman is the guy who makes all journalists nervous because he seems to be more productive than the rest of us and thats kind of frightening given that he does all these other things on the side, but we ask discuss those things later. I wanted to start by asking each of the panelists what they took afwra the away from the conversation we had this morning. I want to start with olivier who makes the observation in the slide you see behind us thats been made about how the wage phillips curve behaves perhaps as one might have expected, but prices arent rising. So the question is what the hell is going on . Okay. So i had prepared a slide in anticipation. I think it has survived the previous three hour
Our conversation from the Brookings Institution on Monetary Policy and inflation continues. Coming up, well hear from former fed chair ben bernanke and New York Times columnist and authored paul krugman. Thank you all for continuing the conversation. Its almost hard to believe theres anything left to say after those panels. So i was going to propose that we do this whole thing in rap. Or maybe in finnish, but i thought that was a little unfair given that i havent given the panel advanced warning of that. Thats right. Also, you wouldnt want to hear me. So i am joined here by Olivia Blanchard whos with the peterson institute, formerly of the International Monetary fund and m. I. T. Loretta mester, and ben beg your pardon ben bernanke, our colleague here at brookings, paul krugman, the economist at the university of new york and columnist for the New York Times. Krugman is the guy that makes all journalists nervous because he seems to be more productive than the rest of us and thats kind
Advance warning and so i am joined here by olivia who is now at the Peterson Institute and loretta who is the president of the Federal Reserve bank in cleveland and grenade the former fed chairman and paul crewmen the economist and Senior University of new york and columnist for the New York Times and he is the guy who make all journalists nervous because he seems to be more productive than the rest of us and that is kind of frightening given that he does all these other things at the side but we can discuss that later so i wanted to start by asking each of the panelists a little bit about what they took away from the conversation we had this morning. I want to start with olivier who made the observation, him inside the you see behind us about how they behave, perhaps one in this expected but prices arent rising so the question is, what the hell is going on . So i had prepared a slide in anticipation and i think it has survived the previous three hours fairly well and coincides with th
Questions relevant. Today one of the most vexing questions for people who participant in markets, but thats a different part of the world, is that inflation has refused to rise, much less persist, at the 2 targets. Key question is, why . While history will be the judge once the data has been interrogated, we dont have time for that, because todays policymakers and investors need to act and to do so require at least a rudimentary answer to this puzzle. Today we have gathered some of the leading experts in the world. Inflation didnt fall as much during the Great Recession as the models anticipated and hasnt risen as much lately. Is it dead or just dormant or has the death been much exaggerated. In my experience, wiped capitulation is the first sign of the bottom. Thats kind of where we are right now. Has Monetary Policy been so well anchored. Have globalization and Technology Made raising prizes difficult . Has the economy evolved in ways the models simply havent been incorporated . And
Central Bank Governors a, the boj will reexamine prices and the economy at its october meeting after holding rates. There was a bank of england decision today and is nordisk bank the first hock standing hawk standing . Matt a lot of headlines last night out of the fed. First diving and then recovering, although not setting new highs again on the s p 500. Nejra i did find it interesting because yesterdays meeting and the press conference engender debate. I said it hawkish cut with a question in my voice because i am not sure it was hawkish. He saw division on the fomc but te tuesday 10 curve twos ns, but the equity market is key, as well, perhaps signaling something more balanced. And we almost got a whatever it takes moment from powell during the presser. Policymakers lowered their main Interest Rate for a second time chairman powell saying moderate policy moves should be sufficient to sustain the u. S. Expansion. The overarching story was one of division on the fomc with updated quart