What’s the solution to inflation? - How the Fed manages inflation.

Описание: What's causing inflation and rising interest rates, and what can you do to better navigate an economy that's much different than it was not that long ago?   
  
Get answers to some of the most asked questions surrounding inflation, the Federal Reserve and the U.S. National debt. 
 
Guest: Jason Taylor, professor of economics at Central Michigan University 
 
00:00 – Introduction 
01:20 – What is inflation? 
03:08 – How is inflation measured? 
04:25 – What is the Federal Reserve and how did it come to be? 
06:20 – Why does The Fed raise or lower interest rates? 
08:12 – How does the debt ceiling work and how does it impact the economy? 
11:26 – Who holds the U.S national debt? 
13:20 – What resources are there for good economic information?


-Episode Summary
In this episode of The Search Bar, host Adam Sparkes interviews Jason Taylor, a professor of economics at Central Michigan University, to discuss topics related to the economy. They cover inflation, interest rates, and the debt ceiling. Taylor explains that inflation occurs when there is too much money chasing too few goods, resulting in a decrease in the value of money and an increase in prices. He attributes the recent inflation to a combination of supply chain issues and the massive stimulus policies implemented during the pandemic. Taylor also explains the role of the Federal Reserve in managing the economy, including its ability to influence interest rates through buying and selling government debt. He discusses the recent rate hikes by the Fed and their potential impact on borrowing and spending. Regarding the debt ceiling, Taylor explains that the US and Denmark are the only countries with a hard debt limit, but other countries have debt limits relative to their GDP. He emphasizes that the majority of the US debt is held by American citizens and defaulting on the debt would have negative consequences for them. Taylor suggests that increasing legal immigration of young, educated individuals could help address the demographic imbalance contributing to the debt issue. He recommends the Wall Street Journal as a reliable source for economic information.