Why didn't inflation respond to increased interest rates? Despite the Fed's continual increase in interest rates, consumption in America stayed high. This is because the wealthiest 10% got very rich between 2020 and 2024. When you have such a dramatic increase in wealth, consumption will stay high, which means the increase in interest rates will have a smaller impact on inflation's growth. In our new working paper, INET's Research Director, Thomas Ferguson, explains why the government needs to f

Is self-interest the best way to organize society? If monetarism has taught us anything, the models aren't at fault, it's our application of them that's flawed. Perhaps we just need to do a better job of letting markets guide us? Homo Economicus explains why greed is good. 😉 learnecon.org | Institute for New Economic Thinking