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David Andolfatto announces new research on the effectiveness of interest rate policy in addressing U.S. inflation during the COVID-19 period.
The study, co-authored with Fernando Martin of the St. Louis Fed, examines how the conduct of U.S. fiscal policy sets boundaries on the ability of monetary policy to contain inflationary pressures. Feedback on their findings is invited.
Andolfatto previously reported that U.S. PCE inflation reached 3.5% year-over-year and 8.3% on a month-over-month annualized basis. In a separate note, @Afinetheorem emphasized that program evaluation relies on identifying investments and costs at the outset. These comments provide context for the ongoing discussion on inflation and policy effectiveness.