＞"Jerome Powell and Lisa Cook should stop playing dumb indefinitely. They must promptly and deeply apologize to President Trump and the American people for 'triggering high inflation in 2022 through their erroneous high-interest rate policy,' and the FRB must compensate the American people on their behalf for the damages they sustained."
＞ * In 2022, the U.S. Federal Reserve (FRB) and other central banks repeatedly raised interest rates to combat cost-push inflation triggered by the supply shock that coincided with the outbreak of the war in Ukraine.
＞ * The theoretical justification for this was New Keynesian economics—which emerged after the end of the Cold War and was hailed as the "New Principles of Macroeconomics"—with the Taylor rule serving as its core foundation.
＞ * However, as repeated in previous essays, raising interest rates as an anti-inflation measure is effective only in cases of demand-pull inflation where the assumption of the "Divine Coincidence" holds true—meaning that as long as the inflation rate is stabilized at its target, the output gap automatically becomes zero (optimized).
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＞"Jerome Powell and Lisa Cook should stop playing dumb indefinitely. They must promptly and deeply apologize to President Trump and the American people for 'triggering high inflation in 2022 through their erroneous high-interest rate policy,' and the FRB must compensate the American people on their behalf for the damages they sustained."
https://gyazo.com/97fed86fd0be366928174784bbbd4195
＞ * In 2022, the U.S. Federal Reserve (FRB) and other central banks repeatedly raised interest rates to combat cost-push inflation triggered by the supply shock that coincided with the outbreak of the war in Ukraine.
＞ * The theoretical justification for this was New Keynesian economics—which emerged after the end of the Cold War and was hailed as the "New Principles of Macroeconomics"—with the Taylor rule serving as its core foundation.
＞ * However, as repeated in previous essays, raising interest rates as an anti-inflation measure is effective only in cases of demand-pull inflation where the assumption of the "Divine Coincidence" holds true—meaning that as long as the inflation rate is stabilized at its target, the output gap automatically becomes zero (optimized).
https://gyazo.com/931f2ad38fc58b5e70b0fb33569e25cf