EconoMonitor : Ed Dolan’s Econ Blog » Inflation Expectations are at a Record Low—or are they Soaring?
by Gilbert Keith
From the blog: "The bottom line is that we can’t really measure inflation expectations as accurately as we would like to. By historical standards, inflation expectations have clearly been moderate throughout the recent recession and recovery, despite the Fed’s aggressively accommodative policies. Changes over the past few months would appear to fall within the range of measurement error. It would be premature to interpret the latest wiggles in the charts either as a signal for the Fed to slam on the brakes before it is too late or as a hopeful sign that better days for the real economy are just around the corner."