Reserve does not target inflation or react to inflation signals." Rather, the Fed reacts to the very real" signal sent by … the Federal Reserve largely ceased reacting to inflation or high unemployment, but continued to react when unemployment … for the effects of inflation and unemployment. …

We quantitatively analyze the way inflation alters the inequality of the income distribution in the U.S. economy. The … main mechanism emphasized in this paper is the bracket creep effect according to which inflation pushes income into higher …, we study time series from the U.S. economy. As our central result we find that irrespective of the level of inflation …