Evidence item

The supplied passage directly states that tightening-generated rent increases raise measured-disinflation output costs and that excluding shelter lowers them. DIRECT_TEXT

Authenticity UNVERIFIED · extraction UNVERIFIED · independence group none (unreviewed) · created seq 22068

Source: Housing Market Segmentation and Monetary Policy · locator {} · excerpt hash sha256:263de80c3e1c203c114d493a8dc739fdeeb042e037f41bc7a8681336f3e1220e

Under a Taylor rule that responds to shelter-inclusive PCE inflation, the central bank reacts to a rent increase generated by its own tightening, raising the output cost of measured disinflation. Excluding shelter from the target lowers this cost and improves welfare, and responding more strongly to goods inflation raises welfare further.