The Return of Inflation—and the Rethinking of Monetary Policy?

Raphael W. Bostic, President and Chief Executive Officer, Federal Reserve Bank of Atlanta. In conversation with Phil Levy.

The Return of Inflation–And the Rethinking of Monetary Policy?

Ever since the financial crisis ended, monetary policy has been plagued by a central mystery: Why has inflation been so low? While unemployment decreased steadily and growth picked up, inflation consistently undershot the Federal Reserve’s inflation goal of 2 percent. Until this May, that is. Recent data revealed that, for the first time in six years, inflation was on target. Economists rejoiced, relieved that the economy was—finally—behaving the way their models predicted. Yet there is a nagging sense that though inflation has finally returned, the mystery has not yet been solved. If it took so long to hit 2 percent, is that the appropriate target in the first place? Is the current framework of our monetary policy due for a reckoning?

Context
Background reading and multimedia:

 

Speaker Bio

Schedule

5:15 p.m.
Registration

5:30 p.m.
Presentation and Q&A

6:30 p.m.
Networking reception

7:00 p.m.
Adjournment

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