Carola Binder on the Importance of Inflation Expectations and How Policymakers Should Respond
Macro Musings with David Beckworth
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The Uncertain Versus the Actual Inflation Rate
Inflation expectations have gone up, but the uncertainty surrounding those has gone up. The new york fed survey asks for what's called a density forecast. So they're trying to get at people's whole probablistic view of inflation. People are not perfectly certain that inflation is going to be two per then your inter quartel range is zero,. But there's this different inter quartal range for different people. It's been rising, but it's hard to say, you know, how big is that increase in uncertainty?
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