The Fed Doesn't Have a Theory of Inflation

The fed was created to supply elastic currency and allow the money supply to expand. The idea is that if workers expect more inflation, they go and negotiate for higher wages,. And then wages are higher, and that feeds into inflation. So this er expectations of inflation than create actual inflationif i mean, anybody who's listening right now would say, that's not how wages are negotiated. We have a measure of expectations in financial markets. Anyhow, that Tthe implicit imflation rate that people in the markets are expecting has been falling sharply in the last two months. It never got very high at all until it dropped below 3%. But any time you raise rates enough, you will create on