Economics Explored host Gene Tunny discusses the US Fed's new approach to inflation targeting with Michael Knox, the Chief Economist of leading Australian wealth management firm Morgans.  The approach implies the Fed will allow the economy to run hot for a while during the recovery from the pandemic recession. The conversation revolves around Michael's recent note:The Fed - Allowing the economy to run hotOther links relevant to the conversation include:Powell announces new Fed approach to inflation that could keep rates lower for longerBoskin Commission ReportFRED yield curve data showing steepening yield curve over late 2020/early 2021, as longer-term rates/yields (e.g. 10-year Treasury bond yield) increase relative to shorter-term rates (e.g. Federal Funds Rate)Michael Knox on Quantitative Easing as a long-term strategyRobert Heller's 1976 paper on International reserves, money, and global inflation

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