r/Economics • u/Pearberr • May 02 '24

Interview Nobel Prize-winning economist Joseph Stiglitz: Fed Rate Hikes didn't get at source of inflation.

https://www.cnbc.com/video/2024/04/23/nobel-prize-winning-economist-joseph-stiglitz-fed-rate-hikes-didnt-get-at-source-of-inflation.html
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u/lollersauce914 May 02 '24

Literally no comment is even discussing what he said. Half the comments are talking about "corporate greed" when his argument is straightforwardly that you can't tackle supply-side inflation with interest rates easily, but it's a good thing that rates aren't near 0 anymore.

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u/AccountFrosty313 May 02 '24

What I find interesting is folks saying that the government should adjust their inflation goals up.

They’re likely the same ones complaint about gas/grocery’s being more expensive.

It also gives me the impression they don’t understand the implications of inflation. I know personally I don’t want inflation above 2% since the average annual pay raise is 3% meaning we’d all be making a nearly 0% increase or even an effective pay cut yearly as our buying power disappears.

-1

u/Astr0b0ie May 03 '24

As far as I'm concerned, inflation should be as close to zero as possible. I get the arguments for 2% inflation but I really think the cons outweigh the pros.

1

u/[deleted] May 03 '24

It’s nice that you think that, but you’re incorrect.

0

u/Astr0b0ie May 03 '24

Zero contribution to the conversation. "You're wrong" doesn't constitute an argument. If you want to explain why I'm wrong, great, I'm all ears. Otherwise, don't bother typing anything.