Inflation: Risks, Implications, and Policies

November 04, 2022

On November 4, 2022, the Federal Reserve Bank of New York hosted a hybrid symposium titled “Inflation: Risks, Implications, and Policies.” The goal of the symposium, which was organized by the Applied Macroeconomics and Econometrics Center of the Federal Reserve Bank of New York, was to stimulate a thought-provoking debate among participants— who included academics, practitioners, and policymakers—on the implications of high inflation and the policies needed to combat it. The event was comprised of presentations, followed by Q&A, on the following topics: inflation and financial markets, inflation and inequality, inflation expectations, and disinflation policies.

watch the event



This was a hybrid event, with most presenters in person and all attendees joined virtually.


All remarks were on the record, with a recording to be made available afterward. For Media inquiries, please contact Mariah Measey at at mariah.measey@ny.frb.org.


Nina Boyarchenko
Marco Del Negro
Keshav Dogra
Argia Sbordone

Event Details

Date & Time
November 4, 2022
10:25 AM-3:35 PM EDT

Hybrid: Federal Reserve Bank of New York and virtual.


For logistical inquiries, please contact ny.researchconference@ny.frb.org.

Each one-hour session will include two fifteen-minute presentations followed by a thirty-minute roundtable discussion.

10:25-10:30pm Introduction
10:30-11:30am Inflation and Financial Markets
Does the current period of elevated inflation pose financial stability concerns, for example through rising mortgage rates? Given the relatively short history of trading in inflation-linked securities, is there a bigger chance of a “hedging” mistake for inflation risks? How reliable are market-based measures of inflation expectations in the current environment?

Speakers: Hanno Lustig, Stanford University; Ángel Ubide, Citadel
Hanno Lustig's Presentation
Ángel Ubide's Presentation
11:30-11:35pm Break
11:35am-12:35pm Inflation and Inequality
What do we know about the distributional effects of inflation and disinflationary policies? Do models that take inequality into account imply different costs of inflation than representative agent models, and if so, why? How (if at all) does heterogeneity affect the appropriate measure of slack in the Phillips curve?

Speakers: Xavier Jaravel, London School of Economics; Martin Schneider, Stanford University
Xavier Jaravel's Presentation
12:35-1:30pm Lunch
1:30-2:30pm Inflation Expectations
Which inflation expectations matter the most for inflation dynamics—those of households, firms, markets, professional forecasters—and at what horizon? What anchors longer-term inflation expectations? How should we measure the risks that expectations become unanchored? Do the Fed’s current strategy and communications provide adequate anchoring?

Speakers: Hassan Afrouzi, Columbia University; Ulrike Malmendier, University of California Berkeley
Hassan Afrouzi's Presentation
Ulrike Malmendier's Presentation
2:30-2:35pm Break
2:35-3:35pm Disinflation Policies
What is an appropriate disinflation strategy? How does it depend on the mix of demand or supply shocks? What, if anything, does recent experience tell us about the desirability of “makeup” strategies? Is a significant slowdown in real activity needed to bring down inflation? Did Chair Volcker bring inflation down in the early 1980s mainly by generating a sharp recession or by making the Fed’s commitment to disinflation more “credible” than his predecessors had? How is central bank credibility gained and lost?

Speakers: Jennifer La’O, Columbia University; Stephanie Schmitt-Grohé, Columbia University
Jennifer La’O's Presentation
Stephanie Schmitt-Grohé's Presentation

Hassan Afrouzi
Assistant Professor
Columbia University

Xavier Jaravel
Associate Professor of Economics
London School of Economics

Hanno Lustig
The Mizuho Financial Group Professor of Finance
Stanford Graduate School of Business

Jennifer La’O
Associate Professor
Columbia University

Ulrike Malmendier
Edward J. and Mollie Arnold Professor of Finance and Professor of Economics
University of California Berkeley

Stephanie Schmitt-Grohé
Professor of Economics
Columbia University

Martin Schneider
Professor of Economics
Stanford University

Ángel Ubide
Managing Director


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