Monetary Policy: The Negative Real Shock Dilemma

Transcript

♪ [music] ♪ [Alex] So far, we've reviewed the challenges that the Fed faces when dealing with a straightforward aggregate demand shock. Now, we're going to graduate to a more difficult scenario, more difficult for the Fed -- a negative real shock to the economy. Recall from earlier videos that a real shock, such as a rapid rise in the price of oi... Read More