I'd love to know what Volcker thinks about our current situation.
I'd love to know what Volcker thinks about our current situation.
Volcker is dead.[0]
They'll just bring back out their bazooka and lower rates again and cause more inequality.
Tale as old as time.
It doesn't seem to be working, for very obvious reasons: demand for energy and food (main cause of inflation) isn't that elastic. Further, there's no unemployment, so people spending and will spend only more because of inflation itself.
The one thing that could motivate people to stop spending, raising bank savings interest rates to something meaningful, is oddly not in the playbook.
I am surprised they have not come up with better models given the technology and data available.