Potential Decoupling in Monetary Policy?

• Studies show that due declining high-tech consumer good prices inflation in US is 1-2% lower.

• A back-of-the-envelope comparison about potential inflation differential between US and Turkey:

• • Potential Differential=Differential(Food Asymmetry)+Differential(High-tech cons. Prod. Assym.)
  • Potential Differential=0.28*(8.25%)+1.5%=3.8%