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Inflation has caught America’s attention and the Federal Reserve is reaching for Lego to explain why some price rises will probably prove temporary.
As policy makers strive to communicate their approach to keeping inflation in check — a vital step to preserve their credibility with the American public amid a recent surge in prices — the Cleveland Fed is taking a different approach.
In a series of three 60-second animated videos, it explains what inflation is, why people should care about it and how the Fed controls it, each using a town and characters built out of the Danish toymaker’s colourful plastic bricks.
The Cleveland Fed, home to the Center for Inflation Research, differentiates between inflation across a wide variety of categories and price increases restricted to just a few areas of the economy.