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I think Randall is right on expectations, particularly given weakened labor conditions that prohibits any kind of reactive wage pressures to rising prices.

Even so, what the general public thinks has to do with their recent actual experiences and current observations.

Dr. William Van Lear
Professor Emeritus
Economics Department
Belmont Abbey College



On Sun, Sep 26, 2021 at 11:55 AM Wray, Randall <[log in to unmask]> wrote:
Non-NU Email
Why Do We Think That Inflation Expectations Matter for Inflation? (And Should We?) (federalreserve.gov)

Author's footnote: I leave aside the deeper concern that the primary role of mainstream economics in our society is to provide an apologetics for a criminally oppressive, unsustainable, and unjust social order.

Preaching to the choir.

The paper wastes a lot of time trying to make the case, but the general claim that expectations do not determine inflation is one I've always made. Expectations eventually converge to reality.

With some exceptions for the devoutly religious.


L. Randall Wray
Senior Scholar, Levy Economics Institute

Professor of Economics, Bard College

Emeritus Professor, University of Missouri-Kansas City

Co-editor Journal of Post Keynesian Economics
ISSN 0160-3477 (Print), 1557-7821 (Online)
www.tandfonline.com/toc/mpke20/current

http://www.tandfonline.com/toc/mpke20/current

Recent Books:

A Great Leap Forward: Heterodox Economic Policy for the 21st Century; Randall Wray; Paperback ISBN: 9780128193808; Academic Press; Published Date: 22nd January 2020; https://www.elsevier.com/books/a-great-leap-forward/wray/978-0-12-819380-8

 

Macroeconomics; Author(s): William Mitchell, L. Randall Wray, Martin Watts; Red Globe Press, Macmillan International; February 2019; https://www.macmillanihe.com/page/detail/Macroeconomics/?K=9781137610669.

 

Why Minsky Matters: An Introduction to the work of a maverick economist, Princeton University Presshttp://press.princeton.edu/titles/10575.html

 

Modern Money Theory: a primer on macroeconomics for sovereign monetary systems, Palgrave Macmillan http://www.palgrave.com/page/detail/modern-money-theory-l-randall-wray/?isb=9781137539908 

 



 
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