Let me turn now to the losers from high inflation. There are three social groups that we should all worry quite a lot about, for both economic and ethical reasons. The first are younger people. Higher inflation and higher interest rates make it more expensive (and often impossible) to start borrowing for housing, education or transport, or starting new businesses.
As a result, consistent with the policy implication of Bill's 1970 model, the Federal Reserve (like most other central banks) today uses the overnight interbank rate as the principal operating target of monetary policy.