Remarks at the Rotary Club of Nashville, Nashville, Tennessee, July 20, 2009

Remarks at the Rotary Club of Nashville, Nashville, Tennessee, July 20, 2009

Remarks at the Rotary Club of Nashville, Nashville, Tennessee, July 20, 2009

In 1980's, a new convention emerged in the economics profession - that central banks' primary, even sole, responsibility should be controlling consumer price inflation. By the 1990's, this view was gaining credibility in policy circles, and various countries mandated that their central banks...

To accurately forecast the future rate of inflation, it is imperative to account for inflation’s underlying trend. This is especially important for medium- to long-run forecasts. In this Commentary I demonstrate a simple but powerful technique for incorporating this trend into standard...