Between the end of the Great Recession in June 2009 and the close of 2017, inflation remained below the Federal Reserve’s 2% goal. Economists Tim Mahedy and Adam Shapiro explore the landscape of a low-inflation environment and the surprising factor behind it. Whether the 0.5% rise in consumer prices in January 2018 signals the start of an inflationary trend or turns out to be a short-term spike is unclear, but getAbstract nonetheless recommends this astute report to analysts, economists and executives interested in what drives inflation.
In this summary, you will learn
- Why inflation has lagged the Federal Reserve’s 2% threshold during the economic recovery,
- What factors contribute to this dynamic and
- What those aspects mean for future inflation trends.
About the Authors
Tim Mahedy is an associate economist at the Federal Reserve Bank of San Francisco, where Adam Shapiro is a research adviser.