Fed Has An Obligation To Fix Inequality: Petrou

The video discusses the increasing wealth and income disparities in the US since the 1980s, highlighting the role of the Federal Reserve's policies in exacerbating inequality. Karen Petrou, author of 'Engine Of Inequality,' argues that the Fed's focus on inclusive growth is a step forward, but more needs to be done. The Fed's mandates, including full employment, price stability, and moderate interest rates, are examined. The discussion also covers the shift from a manufacturing to a financial economy and the challenges of reversing financialization. Petrou emphasizes the Fed's obligation to address inequality, suggesting that fiscal policy can aid in this effort.

What has been the trend in wealth and income disparities in the US since the 1980s?

• They have improved significantly.

• They have remained stable.

• They have been steadily worsening.

• They have fluctuated without a clear trend.

According to Karen Petrou, what significant change occurred in 2010 regarding inequality?

• Inequality was unaffected by Fed policy.

• Inequality increased due to changes in Fed policy.

• Inequality decreased due to new policies.

• Inequality remained unchanged.

What does Karen Petrou argue about the Fed's mandate concerning inequality?

• The Fed's mandate includes addressing inequality.

• The Fed has no mandate to address inequality.

• The Fed's mandate is solely focused on inflation.

• The Fed's mandate is only about employment.

What are the three mandates of the Federal Reserve according to Karen Petrou?

• Full employment, inflation control, and high interest rates.

• Maximum employment, price stability, and high interest rates.

• Maximum employment, inflation control, and low interest rates.

• Full employment, price stability, and moderate interest rates.

How does Karen Petrou describe the current state of the US economy?

• As a financial economy.

• As a manufacturing economy.

• As a service economy.

• As an agricultural economy.

What does Karen Petrou suggest is necessary to address the financialization of the US economy?

• Reversing incentives for share buybacks.

• Increasing manufacturing jobs.

• Reducing service sector jobs.

• Encouraging more agricultural production.

What role does fiscal policy play according to Karen Petrou in addressing inequality?

• It should be minimized.

• It is the primary solution.

• It plays a supportive role.

• It has no role.