Fed's Kaplan Sees Technology Enabled Disruption

The video discusses the global challenge of boosting inflation despite strong growth and tight labor markets, highlighting that this issue is not limited to the US. It explores structural forces like globalization and technology disruption, which are dampening price pressures. The video also examines demographic trends, such as aging populations and slowing workforce growth, affecting GDP. It suggests that the natural rate of unemployment may be lower due to these structural factors and emphasizes the importance of immigration and skills training to counteract these trends.

Why is it important to understand the natural rate of unemployment in the context of current economic conditions?

What similarities exist between Japan's economic situation and that of other Western countries?