We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an … common doctrine underlying the systematic monetary policy choices in each country. The nonmonetary approach to inflation …

-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … breakdown of the relation between inflation and activity. To examine the first, we look at 122 recessions over the past 50 years … unemployment on inflation, for given expected inflation, decreased until the early 1990s, but has remained roughly stable since …

-sample estimation. In contrast to Orphanides (2002, 2003), I find that the Fed's response to the real-time forecast of inflation was … (2000). However, the response to inflation was strong before 1973 and gradually regained strength from the early 1980's …

.K. regime (CPI inflation targeting combined with a floating exchange rate), and adoption of the euro, as monetary policy options …

the trend inflation rate in the U.K. would have been reduced by more than one half if the Bank of England had not allowed …

the adoption of inflation targeting. However, the recent financial crisis and the call for central banks to focus more on …