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How should we think about “transient inflation”?

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[unable to retrieve full-text content]Here’s Matt Yglesias: One definition of transient inflation is higher than normal inflation that will soon return to normal (say 2%.) That’s probably the definition this is most consistent with how we normally define terms like “transient”. But I don’t think it’s the most useful definition, the definition that gets at the question that we […]

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Here’s Matt Yglesias: One definition of transient inflation is higher than normal inflation that will soon return to normal (say 2%.) That’s probably the definition this is most consistent with how we normally define terms like “transient”. But I don’t think it’s the most useful definition, the definition that gets at the question that we […]
Scott Sumner
Scott B. Sumner is Research Fellow at the Independent Institute, the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University and an economist who teaches at Bentley University in Waltham, Massachusetts. His economics blog, The Money Illusion, popularized the idea of nominal GDP targeting, which says that the Fed should target nominal GDP—i.e., real GDP growth plus the rate of inflation—to better "induce the correct level of business investment".

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