What have we learned about inflation dynamics?

Abstract

The recent runup in inflation has raised serious concerns, discussed by a panel of macro and monetary economists who are also current and past policymakers. History suggests that inflation tends to decelerate more slowly than it ramps, which is particularly relevant given the series of shocks. Could inflation expectations become unhinged, making the policy task of unwinding high inflation even more difficult? How strong is the Fed’s commitment to push down inflation? Has it been a mistake for the Fed and other Central Banks to pause rate hikes? How much of a complication has expansionary fiscal policy created? Has the equilibrium rate of interest increased?