Wednesday, May 8, 2019

And yet, economists say inflation is driven by expectations

It appears that households and businesses reduced their expectations of inflation and scaled back their expectation of rising asset values only after inflation was reduced.
From the January/February 1993 issue of the Federal Reserve Bank of St. Louis Review: On the Macroeconomics of Private Debt (PDF, 14 pages) by Keith M. Carlson.

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