Macro Musings with David Beckworth cover image

Heather Long, Ryan Avent, and Cardiff Garcia on Pandemic Reflections and Economic Predictions for the Future

Macro Musings with David Beckworth

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What's the Threshold Effect?

The BIS had an annual economic report and they found usually when inflation got 5% or more, the diffusion of the price increases went everywhere. Google searches for inflation take off near 45%. So all these indicators suggest there's the threshold effect where we discovered it. If you want to be successful, you can't have a program that's going to run inflation about 5% for some sustained period of time.

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