Gavin, William T.; Kydland, Finn E.; Pakko, Michael R. - Federal Reserve Bank of St. Louis - 2006
This paper analyzes the interaction of inflation with the tax code and its contribution to aggregate fluctuations. We … cycle before 1980 because policymakers did not exert effective control over inflation. Monetary policy reform around 1980 … led to better control, and with more stable inflation, the effect of the interaction between monetary policy and the …