With a global economic growth slowdown and climbing inflation, the challenge will be achieving a soft landing.
Whether looking at 2022 or 1979, we would see that our inflation expectations can become a self-fulfilling prophecy.
Because the Congress established a dual mandate of high employment and price stability for the Federal Reserve’s monetary policy, they created a dilemma.
Demonstrating Russia’s current plight, this graph so perfectly illustrates stagflation: When GDP sinks and inflation increases, the stagflation that results is tough to cure. If monetary authorities target inflation with tight monetary policy, then interest rates go up and further…