A recent poll from the National Association for Business Economics found that 21% of economists now believe the current monetary policy set by the Federal Reserve is too restrictive, the highest level in more than a decade. There is. The debate over how the Fed controls the economy continues to rage.
Thomas J. Phillipson, former acting chairman of the White House Council of Economic Advisers in the Trump administration, joins Yahoo Finance to discuss how the Fed is operating under current economic conditions and how central banks are Discuss why you think there is not enough room. their policy.
Mr Phillipson commented: “I've long argued that their framework is wrong, and I'm not alone in that. A lot of people have argued, this Phillips curve framework, that you have to destroy the economy to get inflation down. A lot of economists don't believe in that framework, even if it's a book like the Washington, D.C., instruction manual that says, “We had pretty strong growth, but inflation is falling. This is just one example of this Philipp curve relationship, where inflation is not driven and there is no need to destroy the economy to reduce inflation.”
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Editor's note: This article was written by Nicholas Jacobino
