Tag Archives: inflation

Learning from Inflation Experiences

From Ulrike Malmendier and Stefan Nagel: How do individuals form expectations about future inflation? We propose that personal experiences play an important role. Individuals adapt their forecasts to new data but overweight inflation realized during their lifetimes. Young individuals update their expectations … Continue reading

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Inflation & Economic Slack

From Paul Krugman      

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2 Quick Takes on International Stories in the WSJ

1. Global Currency Tensions Rise Abe says Japan must defend “itself against attempts by other governments to devalue their currencies by ensuring the yen weakens as well.” I’m curious to see if the combination of these pressures in the US, … Continue reading

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Optimal Inflation Rates – the Costs & Benefits of Inflation

I’m giving a lecture today on inflation to prep Econ 191 students for Yuriy Gorodnichenko‘s paper (ungated) on Optimal Inflation Rates next week. I compiled a list of some costs and benefits of inflation from a few sources: an old Larry … Continue reading

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Why are health and education costs exploding? Clues from Long Run Relative Prices

This isn’t the prettiest chart I’ve ever made, but it’s quite important. It shows that health  (shades of blue) and education (green) prices have increased nearly 7X more than durable goods prices (reddish colors) since early 1980s. This massive increase … Continue reading

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Falling Interest Rates

The secular decline in rates since the Volker era is quite striking. Besides factors related to the great moderation and the global savings glut, I wonder how much of this trend is due to the USD’s exorbitant privilege in a … Continue reading

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