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Fed: Inflation Disagreement Weakens the Power of Monetary Policy
December 13, 2024
WASHINGTON, Dec. 13 (TNSres) -- The Federal Reserve issued the following white paper in December 2024 by Ding Dong, Zheng Liu, Pengfei Wang, and Min Wei entitled "Inflation Disagreement Weakens the Power of Monetary Policy."

Here are excerpts:

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We present empirical evidence that household inflation disagreement weakens the power of forward guidance and conventional monetary policy shocks. The attenuation effect is stronger when inflation fore . . .

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