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The Federal Reserve's average inflation targeting framework is a real commitment to hold inflation near a 2% average across the 2020s, so an overshoot now has to be offset by undershoots later.

Drawn from what Scott Sumner said, then moved away from

A private bookmark. Not a position, and never counted.

What Scott Sumner actually said

Word for word, with the source under each one. They did not write this page.

  1. Scott Sumner · held 19 months

    Monetary economist known for NGDP-level targeting

    I assumed they intended inflation to average roughly 2% during the 2020s.

    The Fed refused to adopt average inflation targeting, and it made a serious policy error precisely because it failed to do average inflation targeting.

Added to korrents 19 Jun 2021 · How quotes work · Something wrong? Tell us

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01 Jun 2021 Sept 2026
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