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 challenges do central banks face regarding inflation targets?

Why is it important for central banks to maintain belief in inflation targets?

How have companies like Amazon and Uber impacted inflation targets according to the Deputy Chief Investment Officer at Credit Suisse?

What does the speaker suggest about the process of inflation creation compared to previous beliefs?

What is the relationship between inflation, wages, and productivity as discussed in the text?