inflation_expectations
  Expectations play an important role on the realization of the inflation rate. In this webpage I give links to articles related with expectations and inflation rate. Since some articles require subscribtion, not all of links may work.
 
 

 

Does America need a recession?

When the Fed cut its discount rate on August 17th, it admitted for the first time that the credit crunch could hurt the economy. The markets are betting it will soon cut its main federal funds rate. Economists are arguing vigorously about how much damage falling house prices and the subprime mortgage crisis will do. But there is one question that is rarely asked: even if a downturn is in the offing, should the Fed try to prevent it?

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Inflation Expectations and Inflation Forecasting

Remarks by Chairman Ben S. Bernanke At the Monetary Economics Workshop of the National Bureau of Economic Research Summer Institute, Cambridge, Massachusetts July 10, 2007

Today I will offer a few remarks on the relationships among monetary policy, inflation, and the public's expectations of inflation, focusing--as seems appropriate for this audience--on some important open questions. I will also give a short overview of the way the Federal Reserve Board staff forecasts inflation, including some discussion of how the staff incorporates information about expected inflation into its forecasting process.

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