Inflation | Econofact

Why Is Inflation so Low?

By Dan Sichel·October 8, 2019
Wellesley College

The Issue:

Inflation has averaged just over 1-1/2 percent over the past decade, well below the Federal Reserve’s target of 2 percent. Such low inflation for such an extended stretch is quite unusual given historical economic relationships. With the current unemployment rate near historic lows, the persistent soft

The Capital Gains Tax and Inflation

By Daniel Bergstresser·August 13, 2018
Brandeis University

The Issue:

The United States Treasury Department is reportedly studying whether it can issue regulations that would allow taxpayers to account for inflation when calculating taxes on capital gains. Such a change has been considered in the past. Taxing savings, like taxing any economic activity, distorts the functioning ...
Read more

What’s the Problem with Low Inflation?

By Michael Klein·August 6, 2017
Fletcher School, Tufts University

The Issue:

Today's low inflation has some economists puzzled. The Federal Reserve has persistently undershot its inflation target of 2 percent since 2012, when it established this level of inflation as one of its policy goals. Modest inflation has a number of benefits, and some concerns have been raised by the persistence ...
Read more