“Because of lower inflation expectations, our model suggests that inflation should hover around 1.7% during good economic times,” San Francisco Fed economists say in a paper
Inflation stands a good chance of not sustainably hitting the Federal Reserve’s 2% target until central bankers find a new mix of policies that will boost public confidence the central bank can provide meaningful stimulus in the next downturn, new research shows.
In a new paper from the San Francisco Fed, published Monday, economists Robert Amano, Thomas Carter and Sylvain Leduc sought to understand why inflation has been so consistently weak in recent years.
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