Do relative price changes account for the behavior of inflation in the pandemic and post-pandemic eras?

One can argue whether the FOMC's response to inflation has been strong enough, but financial markets and surveys suggest that the Fed retains credibility for low inflation in the long run.

The concept of interest rate smoothing behavior by central banks is now standard, but it was not in the early 1980s when Marvin Goodfriend made the concept into a distinct phenomenon to be explained.

The recent high inflation had been due to price changes in a small group of expenditures, but that changed a few months ago.

The annualized PCE inflation rate over the period March through July is 6.5 percent, the highest five-month rate since November 1981.

The new language — which has been in each FOMC statement since September — represents a significant shift in the committee's thinking.

The recent flattening of the yield curve has raised concerns that a recession is around the corner. Such concerns stem partly from the fact that yield curve inversions have preceded each of the past seven recessions.

Research at the Richmond Fed has exploited a large dataset of cash, check, credit card, and debit card transactions at a nationwide retail chain to examine consumer payment choice based on transaction size and location, day-of-week and day-of-month cycles, and longer-term trends.

We use an estimated multi-sector New Keynesian model to decompose the behavior of U.S. inflation into contributions from sectoral (or "relative price") shocks, monetary policy shocks, and aggregate real shocks.

Using three years of transactions data from a discount retailer with thousands of stores, we study payment variation along three dimensions: transaction size and location; weekly and monthly frequencies; and longer time horizons.

This paper investigates the ability of a region participating in a currency union to affect its inflation differential with respect to the union through fiscal policy.

Inflation has hit most other advanced economies in addition to the United States. What can we learn from their experiences?