New Keynesian Economists Face Model Challenge in Trump's Fed

The video discusses the role of the Federal Reserve in managing inflation, particularly focusing on the influence of new appointees who were shaped by the high inflation era of the late 1970s and early 1980s. It highlights the economic theories developed by these appointees, their views on inflation as a market failure, and the potential implications for future interest rate policies. The discussion also touches on the economic conditions leading up to 2019, including low unemployment and the debate over whether inflation will rise.

What role do the Federal Reserve and its appointees believe they have in correcting market failures?

How did Paul Volcker's actions in the late 1970s impact inflation and the economy?

What central problem in economics were the new appointees to the Fed trying to address based on their educational background?

Why is inflation considered a significant issue by the Federal Reserve, and how does it relate to their theory?

What are the implications of low unemployment on inflation according to the Federal Reserve's perspective?