The Two Levers of Inflation. Jake Claver.
What this recording covers
Economic growth and technological deflation dictate how central authorities manage inflation. Claver explains that a sustainable economy can support benchmark borrowing rates when gross domestic product expands sufficiently. When economic expansion decelerates, policymakers attempt to encourage borrowing and consumer activity. Emerging technological sectors such as artificial intelligence and distributed ledger networks exert substantial deflationary pressure on general economic activity. Under such circumstances, reducing borrowing costs serves an inflationary function by stimulating commercial velocity. Claver outlines two primary administrative mechanisms available to influence inflation. First, policymakers can reduce lending rates to encourage businesses and consumers to borrow and circulate currency more rapidly. Second, authorities can expand the money supply through currency creation. The decision to employ either mechanism depends on prevailing economic output and structural deflationary forces generated by technological advancements.
Where this fits
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