Figure 1  Figure 2  Figure 3  Inflation Rate (%)  Figure 4 – Unanchored Inflation Expectations  𝜋𝜋e=4%  U*  𝜋𝜋e=3% 𝜋𝜋e=2%  Unemployment Rate (%)  Inflation Rate (%)  Figure 5 – Frequency of Price Changes 𝜋𝜋e=2%  𝜋𝜋e=2%  2%  𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐  U*  𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐  Unemployment Rate (%)  Figure 6 – Inflation Expectations  Source: Board of Governors of the Federal Reserve System, Monetary Policy Report, March 3, 2023. https://www.federalreserve.gov/monetarypolicy/files/20230303_mprfullreport.pdf  Figure 7 – Frequency of Price Changes 10  0.25  9 8  0.20  7  Fraction  5 4  0.10  3 2  0.05  1 0  0.00  Price Increases  Price Decreases  Note.
CPI is consumer price index. Source: Montag and Villar Vallenas (2023)  Price Changes  CPI inflation  Percent  6  0.15