Former Philadelphia Fed President Plosser on Economy, Policy

The video draws parallels between the 1970s inflation spiral and the economic situation in 2021, highlighting the role of the Federal Reserve in both periods. It discusses the impact of government spending, supply shocks, and the Fed's new framework. The potential outcomes of current policies, including inflation risks and public pressure, are explored, along with the political challenges faced by the Fed in balancing inflation control and employment objectives.

What factors could determine whether the current inflation will persist?

What are the potential risks if the Federal Reserve delays action against inflation?

How might public pressure influence the Federal Reserve's policy decisions?