Bordo, Michael D.; Erceg, Christopher J.; Levin, Andrew T. - 2006
Monetary Policy 2006 which was held at the Federal
Reserve Board in Washington DC and jointly organized by the Federal Reserve … recommended aggressive monetary tightening, on the grounds that the credibility
of monetary policy in the 1970s had sunk too low … characterization of monetary policy. In particular, we assume that the monetary authority
targets the price level in the two earlier …