Economist admits mistake on inflation forecasts, new theories explain unexpected cooling
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I made a mistake by stating inflation cooling without a recession contradicts economic theories, when theories from Minneapolis Fed and UMN economists explain it.
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Those theories, called rational expectations, argue inflation is shaped by expectations set by institutions like the Fed.
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Prominent economist Tyler Cowen said those theories appear to be playing out now.
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Not accounting for inflation gave legislators a false narrative on budgets and surpluses.
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Factors impacting nurse shortages are complex, and higher pay alone won't resolve long-term issues.