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In my conversation with Judy Shelton, she shared a powerful story involving Janet Yellen, the curren
8 months ago
145
In my conversation with Judy Shelton, she shared a powerful story involving Janet Yellen, the current U.S. Treasury Secretary:
In a July 1996 Federal Reserve meeting, Janet Yellen argued for a 2% inflation target, citing a Keynesian perspective tied to "money illusion."
She explained that giving workers a nominal 1% raise during 2% inflation effectively cuts real wages without them noticing.
This perspective was met with laughter around the table.
However, the laughter was clearly at the expense of regular Americans, whose purchasing power would be eroded.
Watch: https://x.com/goldtelegraph_/status/1862272655656997290?s=46
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