Fed Lit
Fed Lit
Issue #6: Adaptive Inflation Targeting with David Barmes
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Issue #6: Adaptive Inflation Targeting with David Barmes

by Sarah Bloom Raskin and Kristina Karlsson

For this month's issue of Fed Lit, Kris and I are excited to present our readers with something we promised from the start—interviews with leading authors in the world of climate risk and central banking. This inaugural installment is an extended conversation with David Barmes, coauthor of the article we profiled in our last issue, “The Case for Adaptive Inflation Targeting: Monetary Policy in a Hot and Volatile World.” Kris and I were thrilled to sit down with him and discuss our reactions to his paper and his insights into the work.

This is a great moment to listen. If you want a break from the recent Fed news about cost overruns and independence—and are frustrated by the lack of Fed news about extreme weather events that are hitting the inflation mandate hard—then you’ll want to tune in. David talks to us about the implications of an adaptive inflation target, how it is different from what central banks might be doing already, what it means for inflation mandates, whether it has the potential to disanchor inflationary expectations, and how this tool might be getting used by central banks in other countries. We tussled a bit with David's ideas, and had a fun time at it.

As ever, we hope you listen, engage, and let us know what you think about the conversation and whether this tool makes sense for the Fed in its pursuit of its inflation mandate.

—Sarah

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