Firms' Inflation Expectations: Not Unanchored, but Perhaps Unsettled?
Interesting read by the #FederalReserveAtlanta:
atlantafed.org/blogs/macroblo…
Interesting read by the #FederalReserveAtlanta:
atlantafed.org/blogs/macroblo…
"Said another way, the current bout of high inflation is unusual in many different ways, and how it will play out remains fraught with uncertainty. Firms' short- and long-run expectations have risen sharply, and longer-run expectations show a clear rise in the average firm's...
probability distribution, to the extent that nearly one-third of the weight is being assigned to anticipated cost increases greater than 5 percent. So as we continue to delve further into these expectations and monitor upcoming developments,...
we're left pondering the question: is this how "unanchoring" begins?"
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