Panmure Gordon's French Says Fed Models Aren't Working

The video discusses the economic divergences between the Federal Reserve and Europe, focusing on the Fed's dot plot and economic predictions. It explores the relationship between the labor market and inflation, questioning if a structural break has occurred. The absence of core inflation despite low unemployment and wage growth is examined. The Fed's reliance on economic models and their effectiveness is critiqued.

What is the main focus of Mr. Draghi in the upcoming months according to the discussion?

• The stock market trends

• The divergences between the Fed's path and Europe's position

• The global oil prices

• The technological advancements in Europe

What potential structural change is being discussed in relation to the labor market?

• An increase in technological unemployment

• A rise in global labor mobility

• A shift in global trade policies

• A break in the relationship between the labor market and inflation

What is the significance of core inflation in the discussion?

• It is crucial in understanding wage growth and unemployment

• It is unrelated to unemployment levels

• It is a measure of technological growth

• It is a new economic indicator introduced by the Fed

What has the Federal Reserve bet on in 2017 and 2018?

• A rise in global trade agreements

• A return to historical norms of inflation and wage growth

• A decrease in global oil prices

• An increase in technological investments

Why are the Federal Reserve's models considered ineffective?

• They are based on outdated technology

• They do not align with the outcomes on the dot plot

• They fail to predict the stock market accurately

• They are too complex for practical use