Levin, Andrew Theo; Taylor, John B. - National Bureau of Economic Research (NBER) - 2010
This paper documents the evolution of long-run inflation expectations and models the stance of monetary policy from 1965 to 1980. A host of survey-based measures and financial market data indicate that long-run inflation expectations rose markedly from 1965 to 1969, leveled off in the mid-1970s,...