Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Average Inflation Targeting
Episode 46 of Monetary Policy Explained with Fexingo dives into average inflation targeting — the framework adopted by the Federal Reserve in 2020 and still debated globally. Lucas and Luna break down how it differs from traditional inflation targeting, using the Fed's 2020 framework review as a case study. They explore why the Fed wanted to allow inflation to run moderately above 2 percent for a time after periods of undershooting, and how this policy played out during the post-pandemic recovery through 2025. The hosts discuss the challenges of measuring the 'average' period…
The skinny
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