Yellen cites ‘stagflationary effects’ in a warning ahead of a meeting of leaders of seven wealthy nations
Earlier this week, Ben Bernanke raised the possibility of stagflation in an interview published in the New York Times.
“Even under the benign scenario, we should have a slowing economy,” he said. “And inflation’s still too high but coming down. So there should be a period in the next year or two where growth is low, unemployment is at least up a little bit and inflation is still high.”
https://www.wsj.com/articles/high-inflation-slowing-growth-raise-risk-of-global-downturn-11652908756
Ben Bernanke says the U.S. economy, for the first time since the 1970s, could be heading toward a period of stagflation
Bernanke told DealBook, in an exclusive interview with Andrew ahead of Bernanke’s new book.
Bernanke says backing away from a 2 percent inflation target would be a mistake. “In everyday life, we judge the credibility of promises more by the reputations of the promise-makers than by the exact words they use,”
The book, “21st Century Monetary Policy: The Federal Reserve From the Great Inflation to Covid-19,”
Did inflation targeting fail?
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