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

February 17, 2023

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.    


Listen to the audio-only version here:

RICHARD CLARIDA


ON TV THIS WEEK:
As part of our ongoing “don’t fight the Fed” theme, we are revisiting a recent invaluable interview with former Vice Chairman of the Federal Reserve, Richard Clarida, who emphasizes the importance of the central bank’s strong commitment to reducing inflation to 2%.    Watch it again here.


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