Monday, 28 August 2023

Interest rates and inflation part 3: Theory

This post takes up from two previous posts ( part 1 ;   part 2 ), asking just what do we (we economists) really know about how interest rate...

Thursday, 10 August 2023

Interest rates and inflation part 2: Losing faith in VARs

(This post continues part 1 which just looked at the data.)  When the Fed raises interest rates, how does inflation respond? Are there ...