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Journal Article
Inflation Persistence as an Outcome of Monetary Policy
Delayed or tepid monetary policy responses can prolong the inflationary effect of temporary economic shocks. When financial markets expect that policymakers are hesitant to raise interest rates in response to an inflationary shock, the shock may have a longer-lasting effect. Research shows that perceptions of a weak policy response can explain the persistent rise and slow decline in inflation during 2021–22, suggesting policymakers may need to consider inflation persistence as an outcome of monetary policy.
Journal Article
A Historical Analysis of the Federal Income Tax
Although income taxes have been the main source of U.S. government revenue for more than 100 years, tariffs once played a greater role in financing government activity. An analysis of U.S. fiscal receipts since 1789 suggests that the shift from tariff-based to income-based tax revenue was driven by three factors: a pressing need for more revenue during the first and second World Wars, a long-run shift in the composition of the U.S. labor force, and a widely held belief that reform was necessary.