Top Traders Unplugged

IL32: Unpacking Inflation: What History Teaches Us About Today's Economy ft. Carola Binder


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Today we share an engaging discussion with Carola Binder, who explores the intricate relationship between inflation and democracy in the United States. Binder argues that inflation has been a crucial part of economic debate since the nation’s founding, intertwined with the political landscape and the fate of democracy itself. She highlights the significant divergence in inflation expectations between Republicans and Democrats, particularly during the Biden presidency, where rising inflation expectations were predominantly driven by Republicans. The conversation delves into how historical perspectives on inflation have shifted, from concerns about devaluation and price stability to modern debates on monetary policy and the role of central banks. Binder also examines the implications of these dynamics for future inflation and the credibility of the Federal Reserve, providing insights that resonate with current economic challenges.

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Follow Carola on LinkedIn and read her book.

Episode TimeStamps:

02:14 - Introduction to Carola Binder

03:20 - How did she approach her research?

07:55 - What does inflation historically mean?

11:19 - How the view on paper money has changed over time

16:25 - How the role of the Fed has evolved historically

22:35 - How gold has impacted the

24:17 - Controlling paper money - advancing democracy or centralizing power?

29:16 - Is 2% inflation the wrong target?

35:27 - Incorporating asset prices into central bank decision making

40:29 - How does Binder measure inflation expectations?

47:10 - Has inflation expectations risen since the Covid19 period?

49:57 - Does the high governmental debt imply a high inflation period ahead?

Copyright © 2024 – CMC AG – All Rights Reserved

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Top Traders UnpluggedBy Niels Kaastrup-Larsen

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