Source: Federal Reserve Economic Data (FRED) – [https://fred.stlouisfed.org/](https://fred.stlouisfed.org/) – Accessed 2024, made with seaborn
mystlurker on
Interesting to see the periods where they aren’t particularly correlated. Seems like it’s become increasingly less good as a tool to manage inflation (a real analysis of this would be great!).
I do wonder if those economists who question the 2% inflation target are correct. Given all the rest of the changes in the world, is something like 2.5-3% a better target? The economy, and especially information, moves far faster than even 30-40 years ago. Sticking to an approach from that time might not be as strong as it was back then.
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Source: Federal Reserve Economic Data (FRED) – [https://fred.stlouisfed.org/](https://fred.stlouisfed.org/) – Accessed 2024, made with seaborn
Interesting to see the periods where they aren’t particularly correlated. Seems like it’s become increasingly less good as a tool to manage inflation (a real analysis of this would be great!).
I do wonder if those economists who question the 2% inflation target are correct. Given all the rest of the changes in the world, is something like 2.5-3% a better target? The economy, and especially information, moves far faster than even 30-40 years ago. Sticking to an approach from that time might not be as strong as it was back then.