What’s the Problem with Low Inflation?
August 6, 2017
The Federal Reserve Bank has persistently undershot its inflation target of 2 percent. This level of low inflation is puzzling, given the low unemployment.
Monetary Policy
Inflation, the rate of change of prices, is very unpopular because it erodes purchasing power. 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.
August 6, 2017
The Federal Reserve Bank has persistently undershot its inflation target of 2 percent. This level of low inflation is puzzling, given the low unemployment.