FOMC participants will continue to couch their inflation projections in terms of PCE inflation, rather than, say, inflation as measured by the consumer price index, because the PCE index is generally thought to provide the single most comprehensive and theoretically compelling measure of consumer prices.
Political economy did not end with sophisticated analyses of isoquants, the income effect and the substitution effect: it was a practical science. After graduating and spending some time in the Bank of Italy’s Economic Research Department on a scholarship, I was encouraged by Professor Cutilli to write to a number of American universities in order to specialize in monetary theory and econometrics.