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 …

Forecasts of the rate of price inflation play a central role in the formulation of monetary policy, and forecasting … inflation is a key job for economists at the Federal Reserve Board. This paper examines whether this job has become harder and …, to the extent that it has, what changes in the inflation process have made it so. The main finding is that the univariate …

I investigate the effects of an increase in the nominal interest rate on inflation and output in the United States and …, nominal interest-rate increases that are perceived to be permanent cause a temporary decline in real rates with inflation … adjusting faster than the nominal interest rate to a higher permanent level. Estimated impulse responses show that inflation …

norms. At those moments governments turned to the printing press. The result was substantial inflation …

collapse of the Bretton Woods system between 1971 and 1973 was rising U.S. inflation since 1965. It was driven in turn by … imports and a ninety day wage price freeze—was that U.S. inflation, driven by macro policies, was the main problem facing the … Federal Reserve Chairman Arthur F. Burns, Nixon adopted wage and price controls to mask the inflation, hence punting the …

A key policy question is: How high an inflation rate should central banks target? This depends crucially on the costs … of inflation. An important concern is that high inflation will lead to inefficient price dispersion. Workhorse New … Keynesian models imply that this cost of inflation is very large. An increase in steady state inflation from 0% to 10% yields a …

108.6 percent. Inflation reduced this ratio about 40 percent within a decade. Yet there are some important differences … inflate. It suggests that when economic growth is stalled, the U.S. debt overhang may trigger an increase in inflation of … about 5 percent for several years. This additional inflation would significantly reduce the debt ratio, even with some …

.S. headline inflation rate. This paper compares alternative approaches to filtering out the transitory effects of these industry … price changes and measuring the underlying or core level of inflation over 2020-2021. The Federal Reserve’s preferred … measure of core, the inflation rate excluding food and energy prices, has performed poorly: over most of 2020-21, it is almost …

, if not the dominant, cause of U.S. inflation. This is possible only if the international economy has caused a significant … and foreign) contributes negligibly (standard error of O.4 percent per annum) to variations in average inflation. Thus …, except possibly a supporting role in the short run, international economy has contributed negligibly to U.S. inflation …