The Washington Post Is Confused About Inflation, Economists Are Not

In an article reporting on a speech by Federal Reserve Board Chair Janet Yellen, the Post told readers:

"One of the puzzles currently confounding economists is why inflation has remained so low even as the recovery has picked up steam. The Fed set a 2 percent inflation target but its preferred measure of price changes shows inflation is about half that."

Actually economists are not at all confounded by why inflation has remained low. The predominant view of inflation is that the change i...