Research probes US consumers’ dislike of inflation
People prefer inflation close to zero but may misunderstand the underlying processes, studies find
US consumers dislike rising prices but have strongly differing views about inflation’s driving forces, two recent research projects find.
One group of economists surveyed a nationally representative sample of US residents to ask what level of inflation people prefer. The average respondent estimates optimal inflation to be 0.2%, and more than 80% reported a figure lower than the Federal Reserve’s 2% target.
Hassan Afrouzi, Alexander Dietrich, Kristian Myrseth, Romanos Priftis and Raphael Schoenle
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