Editor Pick – Optimal Inflation for the U.S.
The debate surrounding the optimal inflation rate is open and often addressed only indirectly by the literature.
Roberto M. Billi, in a recent contribution, finds out that “Even allowing for the possibility of extreme model misspecification, the optimal inflation rate [for the U.S.] is robustly below 1 percent.”
One Response to “Editor Pick – Optimal Inflation for the U.S.”
One percent seems a bit low to me …
Did the Buba get to you, Christian?