Disinflation Needed A Lot Smaller Than Early 1980 Case — Brian Romanchuk

Summary:
Marijn A. Bolhuis, Judd N. L. Cramer, and Lawrence H. Summers released a NBER working paper “Comparing Past and Present Inflation” (link) which constructs a alternate CPI index that is comparable to the present methodology. Historically, the housing component was based on house prices and included mortgage rates — which meant that the housing component of CPI mechanically follows interest rates....Bond Economics Disinflation Needed A Lot Smaller Than Early 1980 CaseBrian Romanchuk

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