Dietrich, Alexander M.; Afrouzi, Hassan; Myrseth, … - 2024
We document novel survey-based facts about preferred long-run inflation rates among US consumers. Consumers on average … prefer a 0.20% annual inflation rate, well below the Federal Reserve's 2% target. Inflation preferences not only correlate … that two narratives based on economic models-describing how inflation lowers the real value of wages and money holdings …