core inflation rather than headline inflation — and is even better approximated with an adjusted core index that covers …We construct a price index with weights for the prices of different PCE (personal consumption expenditures) goods … chosen to minimize the welfare costs of nominal distortions. In this cost-of-nominal-distortions index (CONDI), the weights …

We propose a new approach to assessing the anchoring of inflation expectations using "strategic surveys". Namely, we … measure households' revisions in long-run inflation expectations after they are presented with different economic scenarios. A … key advantage of this approach is that it provides a causal interpretation in terms of how inflation events affect long …

rate both matter for determining inflation and economic activity. …

We study the behavior of U.S. consumers' inflation expectations during the high inflation period of 2021-22 using data … from the Survey of Consumer Expectations. Short- and, to a lesser extent, mediumterm inflation expectations rose as … inflation surged in 2021. Disagreement and uncertainty about future inflation increased significantly. Then, in 2022, even as …

do not force a central bank to tolerate higher inflation, but may generate a tradeoff between the central bank …'s objectives for inflation and real activity. The presence and size of this tradeoff depends on how flexible prices are in the …

central banks target inflation at a rate of about 2 percent. Many economists have recently proposed even higher inflation … importance of appropriately accounting for a low, positive trend inflation rate for the conduct of monetary policy. We first … review empirical research on the evolution and dynamics of U.S. trend inflation, as well as some proposed new measures to …

We find that the firms included in the S&P 500 index are characterized by large increases in earnings, appreciation in … market value, and positive price momentum in the period preceding their index inclusion. This strong preinclusion performance …, and momentum betas, following index inclusion. Nonevent control firms with similar performance experience similar …

temporarily explosive paths depends more on uncertainty about policy-feedback parameters than about the long-run inflation target …. For that reason, the central bank can at least achieve low average inflation. Its ability to move feedback parameters away … from initial beliefs, however, is more constrained. -- inflation ; monetary policy ; learning ; policy reforms …

shocks driving the economy and the systematic response of monetary policy to inflation: More flexible prices amplify the … the effect of supply shocks on output if interest rates are very responsive to inflation. Next, we estimate a medium …