And in the area of monetary policy, the dynamics of inflation both during and following the recession have presented puzzles. For instance, why is inflation both here and abroad remaining stubbornly low today, even as the economic recoveries in the U.S. and the Euro area strengthen, in part boosted by highly accommodative monetary policy? In Boston, we have examined the extent to which a number of factors might explain recent behavior time-variation in the slope of the Phillips curve, a reduced impact of relative prices (especially oil) on inflation, survey measures as proxies for short-run and long-run inflation expectations, and downward nominal wage rigidities. While these factors appear to provide partial explanations, no effects singly or severally provide a complete accounting of recent inflation behavior. Given these uncertainties about inflation dynamics, we have reason to have less confidence than usual in the inflation forecasts from our suite of models, many of which would suggest a gradual rise toward the Fed's inflation target in coming quarters. This makes the current low level of inflation more troubling from the perspective of risk management. So, in short, we need to better understand inflation dynamics.