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 …

In theory, monetary policies that target the price level, as opposed to the inflation rate, should be highly effective … such a policy, if the short-term interest rate is constrained at zero and the inflation rate declines below its trend, the … public expects that policy will eventually engineer a period of above-trend inflation that restores the price level to its …

rule and targets a zero inflation rate, there is a significant increase in the variability of output but not inflation …