Justin Wolfers(@JustinWolfers):Credibility is monetary policy's secret weapon.⁣ ⁣ If a Fed chair convinces you inflation will be low, you start acting like inflation will be low. Restaurants print lower prices, wages settle down, and the expectation becomes the reality.⁣ ⁣ Belief is half the battle.

Justin Wolfers

@JustinWolfers

Prof @UMichEcon & @FordSchool | Fellow @BrookingsInst | Intro Econ textbook author | |

Joined July 2011

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Justin Wolfers@JustinWolfers

2026.09.18 16:03

Credibility is monetary policy's secret weapon.⁣ ⁣ If a Fed chair convinces you inflation will be low, you start acting like inflation will be low. Restaurants print lower prices, wages settle down, and the expectation becomes the reality.⁣ ⁣ Belief is half the battle.