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Prices, Wages and Workers: The Recent U.S. Inflation Experience
Inflation was the economic story of 2023 and the two preceding years. After more than a decade of relatively stable prices, U.S. inflation began to rise in 2021 on the heels of the COVID-19 pandemic, then peaked in mid-2022 before declining.
The main essay of the Federal Reserve Bank of St. Louis’ 2023 annual report focuses on various aspects of inflation. This overview defines inflation and examines different views about its causes. It reviews the rise and fall of inflation after the COVID-19 pandemic shock in 2020 and describes how the Federal Reserve used the tools at its disposal to bring down inflation. The balance of the essay highlights the research of three St. Louis Fed economists whose work helps to explain or forecast inflation and its broader effects on the economy.
The main essay of the Federal Reserve Bank of St. Louis’ 2023 annual report focuses on various aspects of inflation. This overview defines inflation and examines different views about its causes. It reviews the rise and fall of inflation after the COVID-19 pandemic shock in 2020 and describes how the Federal Reserve used the tools at its disposal to bring down inflation. The balance of the essay highlights the research of three St. Louis Fed economists whose work helps to explain or forecast inflation and its broader effects on the economy.
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