Carola Binder on the Importance of Inflation Expectations and How Policymakers Should Respond
Macro Musings with David Beckworth
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Is There Any Way to Use Forecasts to Determine if We Should Be Responding to Inflation?
There is a lot of inflation driven by demand side pressures. There's also still some supply side pressures. Do these forecasts help us figure out that divide? Is there any way polish makers can use these forecasts to get a sense as to whether we should be responding to the inflation we're seen? That's a good question. But at this point, i mean, inflation is just a way too high. And so it's pretty clear that they need to keep tightening. Once we start seeing more of a slow down in inflation, once it becomes a little less obvious what they need to do, that's when it's going to get trickier, right?
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