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 Nobody Really Knows How the Economy Works. A Fed Paper Is the Latest Sign.

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Nobody Really Knows How the Economy Works. A Fed Paper Is the Latest Sign. Vide
PostSubject: Nobody Really Knows How the Economy Works. A Fed Paper Is the Latest Sign.   Nobody Really Knows How the Economy Works. A Fed Paper Is the Latest Sign. Icon_minitimeMon Oct 04, 2021 7:34 pm
Many experts are rethinking longstanding core ideas, including the importance of inflation expectations.

Nobody Really Knows How the Economy Works. A Fed Paper Is the Latest Sign. 01up-expectations-02-articleLarge

It has long been a central tenet of mainstream economic theory that public fears of inflation tend to be self-fulfilling.

Now though, a cheeky and even gleeful takedown of this idea has emerged from an unlikely source, a senior adviser at the Federal Reserve named Jeremy B. Rudd. His 27-page paper, published as part of the Fed’s Finance and Economics Discussion Series, has become what passes for a viral sensation among economists.

The paper disputes the idea that people’s expectations for future inflation matter much for the level of inflation experienced today. That is especially important right now, in trying to figure out whether the current inflation surge is temporary or not.

.https://www.nytimes.com/2021/10/01/upshot/inflation-economy-analysis.html
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Nobody Really Knows How the Economy Works. A Fed Paper Is the Latest Sign. PgkowJT
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