August 3, 2022
Inflation is the highest it has been in the U.S. in decades. Different gauges provide insights about underlying trends and household experiences.
Inflation, the rate of change of prices, is very unpopular because it erodes purchasing power. But very low inflation can be a sign of a weak economy and make monetary policy more difficult during downturns. Prior to the COVID pandemic, inflation in the United States consistently lagged below the 2 percent target of the Federal Reserve. This trend reversed dramatically as the economy recovered from the initial pandemic shock, with inflation reaching levels not seen in 40 years. Our posts explore the different causes of inflation and its economic costs; the difficulties associated with measuring inflation over time; the policy tools available to combat high inflation and their limitations; and insights into how inflation differs across sectors of the economy.
July 17, 2022
Dan Sichel discusses the measurement of inflation, and how the single, headline inflation statistic may not fully reveal the range of effects across income groups or categories of goods and services.
June 19, 2022
Why is inflation so high? Who does it hurt most? And what are the prospects for it coming down? Karen Dynan of Harvard University joins EconoFact Chats to discuss these questions.
January 18, 2022
How does the expectation of high inflation become self-fulfilling, and what proxies do we have to reflect this inherently unobservable but important economic variable?
October 24, 2021
Alberto Cavallo, a pioneer in gathering and using online micro-data, joins EconoFact Chats to discuss the major takeaways from his analysis of over a billion prices.