Inflation expectations are less important than you may think
A while ago I wrote about the sensational paper by Jeremy Rudd who thoroughly criticized the common belief in the importance of inflation expectations for inflation and monetary policy. In short, central banks focus on keeping inflation expectations “well-anchored” around the long-term inflation target, fearing that if inflation expectations move higher…
Keep reading with a 7-day free trial
Subscribe to Klement on Investing to keep reading this post and get 7 days of free access to the full post archives.