How French firms navigated the inflation surge: Lessons for expectations and decision making
As inflation surged globally, economists and policymakers focused their attention on the expectations of households and financial markets – but relatively little was known about
Fed communication for all – but understood by few
Central banks use communication to influence inflation expectations, with varying effectiveness. This column examines how professional forecasters and households respond to inflationary pressure warnings in
Why monetary policy should crack down harder during high inflation
The recent surge in inflation has led to a significant increase in the frequency of price changes. This column argues that price flexibility has an
The high price of the fight against inflation: The case of the euro area
The fight against inflation has largely been won in the euro area, after a sharp but short-lived inflation episode over 2021-2023. This column argues that
Measurement errors and missing inflation persistence before World War I
Economic historians widely acknowledge that historical price data are measured with error. This column collects pre-WWI inflation data from 15 countries and uses instrumental variables
On the fragility of the nonlinear Phillips curve interpretation of recent inflation
The inflationary episode from 2021 to 2023 reignited the debate on the nonlinearity of the Phillips curve. Aggregate and city-level data indicate a non-linear relationship,
Homeowners care about inflation, renters less so
Consumers have vastly different views about inflation – shaped by personal experience, financial literacy, and exposure to economic news. This column examines how consumers’ housing
