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Inflation and the Personal Tax Code: Assessing Indexation

07.01.90

A reexamination of the potential costs of anticipated inflation in view of the inflation indexing system established during the 1980s.

Suggested citation: Altig, David, and Charles Carlstrom, 1990. “Inflation and the Personal Tax Code: Assessing Indexation,” Federal Reserve Bank of Cleveland, Working Paper no. 90-06.

Headlines

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    Vehicle production has fallen since the beginning of the pandemic recession. We investigate reasons for this decline. Manufacturers in this industry cite insufficient materials, including a lack of semiconductors, as increasingly responsible. Demand seems to be less of an issue. In fact, demand has been strong, and together with accelerating prices and sharply declining inventories, it suggests an insufficient supply of new cars. Our best guess is that the materials shortages and their effects on new car prices will subside within the next six to nine months. Read More

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    In March 2020, in the early days of the COVID-19 pandemic, many were concerned about the liquidity of nonbank mortgage servicers. As it turned out, the vast majority of these servicers did not face a liquidity crisis. In this Commentary I detail the reasons why, including lower than expected take up rates of forbearance, the role played by mortgage origination income, and the actions taken by the government-sponsored enterprises, Ginnie Mae, and housing agencies. Read More

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