monetary policy and inflation is influenced by a set of concepts that are a poor guide to action. In this policy brief, they … to unobservable indicators that are supposed to predict inflation. Noting that their criticisms have now been raised by … for monetary and fiscal policy. The Fed has far less control over inflation than is presumed, they argue, and, at worst …

Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic … growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the … reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they …