The pandemic has been the catalyst for a seismic shift in the American economy as it shifts from an era of abundance to one of insufficient supply. For households, this implies a shift from what we call rational inattention regarding consumption to a more rational approach to spending. As ... READ MORE >
Jackson Hole Economic Policy Symposium
Jackson Hole preview: Powell to set tone for next few years
The conversation around monetary policy among market participants has unfortunately revolved around a potential pivot by the Federal Reserve toward reducing rates because of an elevated risk of a recession. But Federal Reserve Chairman Jerome Powell will have the last word. His much-anticipated ... READ MORE >
CHART OF THE DAY: Why the Fed is likely to talk about the unemployment gap at Jackson Hole
Underscoring the Federal Reserve’s shift in policy to flexible average inflation targeting is the idea that the best way to address inequality is through a lower unemployment rate. While the Fed’s traditional emphasis on inflation and monetary policy is not passé, the idea that the central banks should ... READ MORE >