11min chapter

Unexplainable cover image

We still don’t really know how inflation works

Unexplainable

CHAPTER

Inflation, Expectations, and the Federal Reserve

Exploring the complexities of inflation post-pandemic, the chapter questions the extent of people's impact on inflation expectations and highlights the Federal Reserve's role in stabilizing the economy. It reveals misconceptions about the economy among Americans and delves into the supply chain disruptions causing the inflation surge in 2021. The discussion emphasizes the importance of proactive measures beyond the Fed to manage inflation and explores the psychological aspects of money as a reflection of human relationships.

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