in advances in productivity) monetary countermeasures with the aim of bringing the inflation rate back on to its target path as quickly as possible may accomplish just the opposite of what is wanted: For example, such a monetary policy would run the risk of stimulating macroeconomic growth to an extent that is incompatible with the long-term production potential of the economy.
I look forward, as always, to my conversation with Tim. References Ahn, Hie Joo, and Chad Fulton (2020). "Index of Common Inflation Expectations," FEDS Notes. Washington: Board of Governors of the Federal Reserve System, September 2. ——— (2021). "Research Data Series: Index of Common Inflation Expectations,"FEDS Notes. Washington: Board of Governors of the Federal Reserve System, March 5.