In recent years, the Fed predicted inflation would be below the target. For a while, inflation remained below 2%. It has risen above 2% this year, and it looks like it will stay around for a while. Actually, this situation itself is not a problem. Last summer, the Fed switched to “average inflation targeting,” which […]
https://www.themoneymischief.com/can-overshooting-also-cause-recession/
Last summer, the Fed switched to “average inflation targeting.” The Fed’s main goal is to ensure that the PCE inflation will average around 2% over the long term and that future overshoots will compensate for any short-term discrepancies. Although a starting point is not specified, we can assume that January 2020 is the beginning. Therefore, according […]
https://www.themoneymischief.com/are-you-worried-about-inflation-dont-be/
Studying pre-modern economic history and economic trends can teach a lot. You can take many different perspectives, especially when studying the first invention of money, the Roman period (specifically the 3rd-century crisis), and the High Medieval economy. Years ago, while studying pre-modern economic history for the first time, I wondered how money was invented. Until […]
https://www.themoneymischief.com/lessons-from-the-past/
