"Anchored infation expectations:" Aren't TIPS the best indicator? Granted Treasury ought to give us a 1-, 2-, & 3-year TIPS just as it should a marketable Trillionth.
“By focusing on the growth path of nominal income, NGDPLT sidesteps the real-time knowledge problem of distinguishing supply-driven from demand-driven inflation.”
_All_ inflation is “demand driven.” Sometimes the Fed’s motivation for driving target inflation above target will be supply shocks and sometimes demand shocks. The class of shock is not important for how much (height/duration) is needed to facilitate adjustment to the perturbation of relative prices.
"Anchored infation expectations:" Aren't TIPS the best indicator? Granted Treasury ought to give us a 1-, 2-, & 3-year TIPS just as it should a marketable Trillionth.
“By focusing on the growth path of nominal income, NGDPLT sidesteps the real-time knowledge problem of distinguishing supply-driven from demand-driven inflation.”
_All_ inflation is “demand driven.” Sometimes the Fed’s motivation for driving target inflation above target will be supply shocks and sometimes demand shocks. The class of shock is not important for how much (height/duration) is needed to facilitate adjustment to the perturbation of relative prices.
Audio! :(
I'll wait for the transcript. :)