Nice chart from the Atlanta Fed’s latest big set of charts (PDF) shows that inflation expectations have tumbled since the April FOMC meeting:
This is, again, a reminder of how bizarre the Fed’s stand pat attitude is. If inflation expectations had gone up by a large amount since the last meeting, there’s no doubt that the Fed would have responded with tighter money. So why doesn’t a fall in inflation expectations lead to looser money?
Previous in TP Yglesias
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