the post-pandemic period, the concerning decline in the net national savings rate, and whether the neutral rate of interest, a hotly debated topic among economists, is actually moving lower in what this means for trend growth, interest rates, and inflation. In the second hour, I asked Dr. Hunt why he believes that the Fed has been able to raise interest rates by more than 500 basis points in less than two years without inducing a recession. Is this because other causal factors have remained more accommodative, or have the lags just grown longer and more variable? And if so, why? What does this tell us about the business cycle and the effectiveness of monetary policy? We also discussed the chronically high fiscal deficits and the implications of trying to reduce them in an environment where the economy is becoming more dependent on government spending to boost economic growth, support critical national investments in energy and defense, and contribute to the private savings of the (2/41)
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