The Uselessness of Forecasters in Inflation Expectations

Professors are very good at telling you if you're going to be above or below two and by how much. It may be that the professionals end up becoming a little bit of an echo chamber. We do not respond to them by saying, well, here's apples, bananas, and oranges. The exact same thing applies to expected inflation. There are different expected inflation by different people at different horizons,. And often even reflecting different concepts where we need these models in order to extract the valuable information from them.