Rosengren: Inflation to Rise in '21, Won't Persist Into '22

The video discusses inflation expectations, highlighting temporary factors like supply shocks and deferred consumption that may cause short-term inflation increases. It examines the Fed's new framework, which allows the economy to run hot, and the potential impact of significant fiscal stimulus on labor markets and inflation. The discussion also touches on the debate over labor market slack and its influence on inflation, questioning the validity of the Phillips Curve in the current economic context.

What is the expected inflation rate for the next year according to private sector forecasts?

• 3%

• 2.5%

• 2%

• 1.5%

Which factor is NOT mentioned as a reason for temporary inflation effects?

• Low inventory levels

• Supply shocks

• Increased wages

• Deferred consumption

What is the Federal Reserve's approach to managing inflation according to the new framework?

• Increase interest rates immediately

• Focus solely on unemployment

• Let the economy run hot

• Reduce economic stimulus

What is the current unemployment rate mentioned in the discussion?

• 4%

• 5%

• 7%

• 6%

Why is a strong economy crucial for low-income workers according to the discussion?

• To reduce inflation

• To boost consumer spending

• To prevent long-term unemployment

• To increase their savings

What is the Phillips Curve traditionally used to describe?

• The relationship between inflation and interest rates

• The link between unemployment and inflation

• The correlation between GDP growth and inflation

• The connection between fiscal policy and inflation

What is the main argument against the relevance of the Phillips Curve in the current economic context?

• It overestimates the impact of fiscal policy

• It underestimates the role of global trade

• It shows a weak link between labor market slack and inflation

• It fails to account for technological advancements