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Yes, there's absolutely a well-established phenomena that expected inflation will cause realized inflation. That's why the Fed (and likely other central banks)
by reducesuffering 4y ago
Yes, there's absolutely a well-established phenomena that expected inflation will cause realized inflation. That's why the Fed (and likely other central banks) have to "break" inflation by showing they will get it back to 2% no matter what. If people believe inflation will be 2% the next couple years, it will help cause inflation be 2% the next couple years due to not causing the treadmill of price increases.