Konstam Says Fed Has to ‘Keep on Believing’ in Targets

The video discusses the challenges faced by central banks in meeting inflation targets, highlighting the self-justification required within economic systems. It examines how modern companies like Amazon and Uber have disrupted traditional inflation processes, leading to a reevaluation of how inflation is created. The discussion also touches on the role of the Phillips curve and the implications of inflation targets on wages and prices.

What is a key reason organizations need to self-justify their economic systems?

• To maintain their relevance and purpose

• To increase their profits

• To reduce their operational costs

• To expand their market share

What has been a significant issue for central banks like the Fed in recent years?

• Reducing unemployment

• Meeting their inflation targets

• Increasing interest rates

• Balancing the budget

What might central banks consider doing if they continue to miss inflation targets?

• Decreasing interest rates

• Increasing inflation targets

• Abandoning inflation targets altogether

• Implementing stricter monetary policies

According to the Deputy Chief Investment Officer at Credit Suisse, what has impacted inflation targets?

• The growth of the technology sector

• The decrease in oil prices

• The increase in global trade

• The rise of companies like Amazon and Uber

How has the process of inflation creation changed according to the discussion?

• It is solely dependent on government policies

• It is now influenced by different economic factors

• It is unaffected by technological advancements

• It is driven by consumer spending