This paper studies the value of broad commodity price indexes as predictors of consumer price inflation in the G-7 industrial countries. After an introduction, the paper discusses the theoretical relationship between commodity and consumer prices and the conditions under which, in general, one...

This paper examines the relationships between movements in primary commodity prices and changes in inflation in the large industrial countries. It begins by developing a two-country model in order to examine the theoretical effects of monetary, fiscal, and supply-side disturbances on commodity...

An active stabilization policy requires that policy variables respond to preceding deviations of the target variables from their goal. If there are several competing macroeconomic goals, political parties may differ on the optimal tradeoff to be sought. However, even if allowance is made for...