Tag: episode_1934

WHAT’S THE MAGIC OF TARGETING 2 PERCENT INFLATION? RICHARD CLARIDA RESPONDS TO POWERFUL CRITICS

Legendary Fed Chairman Paul Volcker was highly critical of the Fed’s policy of targeting 2% inflation, saying he saw “no theoretical justification” for it and that if successful, it “would mean the price level doubles in little more than a generation.” In this EXTRA exclusive, Former Fed Vice Chair Richard Clarida defends the 2% solution.