This podcast episode explores the parallels between the current interest rate cycle and the cycle of the 1990s, highlighting the differences in objectives and strategies of policymakers. The current cycle focuses on bringing down inflation caused by COVID-related shocks, while the mid-90s cycle aimed to prevent inflation from rising. The discussion also addresses the impact of labor supply shocks and the potential effects of AI on labor productivity. While some parallels can be identified, uncertainty remains regarding the future path of monetary policy.
