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S6 Ep14: How should we measure expected inflation?

VoxTalks Economics

CHAPTER

The Importance of Expectations in the Economy

There is an entire industry for people watching these policy announcements and using that to predict inflation in the future. We should certainly be listening to them together with some of the other measures, he says. In 2021, 2022, it was a striking event where the household expectations were extremely useful. They would have shown clearly that the high inflation that we're living through now was coming in a way that the professionals did not.

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