The recent disinflation from 8.9% to near 3% without a major recession is a significant puzzle because it contradicts expectations of either credible commitment via rational expectations or supply-side explanations; credibility was real but insufficient to explain the painless disinflation, and supply shocks alone cannot explain it because supply improvements should reduce prices only temporarily.
factualpending
Speaker
Kenneth RogoffEvidence Quote
“I I think is a big puzzle is the first thing to say”
Source
Kenneth Rogoff on Monetary Moves, Fiscal Gambits, and Classical Chess | Conversations with Tyler— Mercatus CenterCreated: 8/11/2026, 7:10:38 AM
My Notes
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