In Mediocre World Policy Rates Lower, Longer: Clarida

The video discusses the concepts of 'new neutral' and 'new mediocre' in the global economy, focusing on low policy rates and slow economic growth. It highlights the role of monetary policy and the debate over fiscal stimulus, referencing economists like Paul Krugman. The discussion extends to interest rates, oil prices, and their impact on fiscal reform. The video also emphasizes the importance of a broad education in an unstable economy and provides insights into the job market for graduates.

What does the 'new neutral' suggest about future policy rates?

• They will fluctuate unpredictably.

• They will be unaffected by global economic conditions.

• They will remain lower for a longer period.

• They will be higher than pre-crisis levels.

How does the fall in oil prices affect fiscal reforms?

• It has no impact on fiscal reforms.

• It accelerates the need for reforms.

• It completely halts fiscal reforms.

• It provides a temporary relief for some countries.

What is a major challenge in understanding the global economy according to the discussion?

• Managing the surplus of resources.

• Dealing with insufficient demand and unconventional policies.

• Understanding the impact of high demand.

• Predicting the exact growth rate of economies.

What is emphasized as a key benefit of a college education during economic downturns?

• It provides a competitive edge in the job market.

• It eliminates the need for further education.

• It guarantees a high-paying job.

• It ensures job security in any field.

Which fields at Cornell are mentioned as having good job prospects?

• Both engineering and hotel management students.

• Only hotel management students.

• Only engineering students.

• Neither field has good prospects.

What is the danger of having limited knowledge in macroeconomics?

• It causes confusion in personal finance management.

• It poses a threat to societal stability.

• It results in a lack of understanding of microeconomics.

• It leads to overconfidence in economic predictions.

What additional skills are suggested for economists to learn?

• Advanced calculus and statistics.

• Technical and entrepreneurial skills.

• Historical analysis and philosophy.

• Foreign languages and cultural studies.