A standard statistical perspective on the U.S. Great Inflation is that it involves an increase in the stochastic trend … rate of inflation, defined as the long-term forecast of inflation at each point in time. That perspective receives support …, and statistical studies of U.S. inflation dynamics. We show that a textbook macroeconomic model delivers such a stochastic …

between the growth rates of real median household income and of private sector productivity. This paper shows that a …