https://twitter.com/jan_eeckhout/status/1617478919560794112First off, I basically agree with Eeckhout's conclusion: underlying inflation has fallen fast, although not quite ready to say that it's 2 percent. Also agree with the general point about the need to smooth but not too much: monthly is too noisy, annual too far behind reality 2/
https://twitter.com/ojblanchard1/status/1609000406184591360A business that raises its prices doesn't do so because the Fed has increased the money supply. The chain of events that leads to that price rise may have started with the Fed, but the firm is responding to its own market conditions 2/
https://twitter.com/ojblanchard1/status/1608967176232525824I think this came from Martin Baily in the 70s. Anyway, one way to think about inflation is that it's like a sports event where everyone stands up to get a better view of the action — which is collectively self-defeating 2/