3 hours ago
The Federal Reserve released a 60-second animated series of seconds explaining how it will keep inflation under control.
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American eyes are on inflation, and the Federal Reserve turned to Lego to explain why some price increases are likely to be temporary.
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As policymakers struggle to communicate their approach to keeping inflation under control – a vital step in preserving its credibility with the United States public amid a recent surge in prices – the Cleveland Fed is taking a different.
In a serie Out of three 60-second animated videos, it explains what inflation is, why people should care about it, and how the Fed controls it, each using a city and characters built from the Danish toy maker’s colorful plastic blocks.
The Cleveland Fed, home of the Center for Inflation Research, differentiates between inflation in a wide variety of categories and price increases restricted to a few areas of the economy.
In one of the videos, Lego people can be seen upset as a narrator describes hyperinflation, where prices suffered to uncontrollable levels, before they are assured that the Fed has things under control.
Viewers end up with a sense of peace after videos show how the Fed can keep inflation on track using its various economic policy tools.
“With the help of the Federal Reserve, there is just the right amount of inflation,” explains the narrator.
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