Macro Musings with David Beckworth cover image

Marijn Bolhuis on Fiscal R-star and its Implications for Macroeconomic Policy

Macro Musings with David Beckworth

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Redefining Inflation: Perception vs. Reality

This chapter explores a research paper that critiques traditional economic indicators, revealing a significant disconnect between consumer sentiment and actual inflation rates amidst low unemployment. It highlights the importance of considering factors like borrowing costs and housing prices in understanding the complexities of inflation as experienced by consumers.

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