Inflation Is a Big Problem for Economists

Inflation is an obvious word. We all know what inflation is. It matters a lot. And it turns out that economists don't necessarily understand it for sure, can't predict it, and even don't recognize it e ly when it appears to be happening. I think that er the problem ixactly mort severe is that thing, sentise, may not be in the right place. A lot of people who did not belive inflation admitted they were wrong. The fed itself was saying there would not be inflation. So let's pause on that before we go to this question of how inflation expectations can shape inflation itself.