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Economic Commentary

The Indicator P-Star: Just What Does It Indicate?

Monetary indicators can help policymakers to evaluate the likely success or failure of policy instrument settings. The recently unveiled P-Star indicator can be useful as an indicator of potential inflation and, more broadly, as a method of assessing the Federal Reserve’s long-term goal of price stability.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Carlson, John B. 1989. “The Indicator P-Star: Just What Does It Indicate?” Federal Reserve Bank of Cleveland, Economic Commentary 9/15/1989.