Using Unemployment to Tame Inflation

The video discusses the global fiscal response to the COVID-19 pandemic, highlighting the increase in government debt in the US and Europe. It features a debate on the necessity of fiscal spending during a pandemic, emphasizing the importance of government support to sustain the economy. The discussion also explores alternative economic frameworks, such as the MTEF, which propose managing inflation and employment differently by ensuring full employment and price stability.

What is the argument for continuing fiscal support in the economy despite high deficits?

What alternative approach to managing inflation is suggested in the discussion?