Starting with the April 2021 release, virtually every monthly Consumer Price Index (CPI) report has indicated some form of abnormally high inflation. For instance, the April CPI rose 4.2 percent over the previous 12 months, the largest year-to-year increase since the period ending September 2008. Similarly, the…

In her CMFA working paper, Carola Binder discusses a new approach for understanding why central bankers are pressured—by both politicians and the public—to deviate from their mandates. Further, Binder argues that this new approach “strengthens the case for limiting monetary policymakers’ discretion by implementing rule-based monetary policy.”…