All posts tagged interest rates

Are you worried about inflation? Don’t be

Last summer, the Fed switched to “average inflation targeting.” The Fed’s main goal is┬áto ensure that the PCE inflation will average around 2% over the long term and that future overshoots will compensate for any short-term discrepancies. Although a starting point is not specified, we can assume that January 2020 is the beginning. Therefore, according […]

Original Sin of the Macroeconomics

I’ve been reading articles on the Keynesian/NeoFisherian debate for a while. It’s an interesting debate for me. Before commenting on the debate, I’d better start from the Great Recession. After the Great Recession, three “heterodox” objections arose in monetary economics – schools of thought that reject the mainstream models. In my opinion, all three objections […]