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16min chapter
Charlie Evans on the Past, Present, and Future of U.S. Monetary Policy
Macro Musings with David Beckworth
The Implications of the Explicit 2% Inflation Target
This chapter discusses the importance of the Federal Reserve's explicit 2% inflation target adopted in 2012. It explores how the explicit target anchors inflation expectations and minimizes volatility in decision-making. The chapter also highlights the significance of symmetric inflation and the need for clear objectives in guiding policy decisions.
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