This paper examines the long-run effects of supply shocks (such as oil shocks) on inflation in the United States. The … persistence of supply shocks in U.S. inflation fell considerably during the period of Volcker’s disinflation (1979-1982). My … the behavior of inflation expectations - agents expected shocks to persist in the pre-Volcker period, but not in the post …

Nach der jüngsten Finanz- und Wirtschaftskrise kamen verstärkt Forderungen auf, die Geldpolitik solle zur frühzeitigen …

This paper considers the Great Inflation of the 1970s in Japan and Germany. From 1975 onward these countries had low … inflation relative to other large economies. Traditionally, this success is attributed to stronger discipline on the part of … governments’ and monetary authorities’ acceptance that inflation is a monetary phenomenon. Their higher inflation in the first …

What monetary policy framework, if adopted by the Federal Reserve, would have avoided the Great Inflation of the 1960s … policy strategies. We show that policies constructed using modern optimal control techniques aimed at stabilizing inflation … stabilizing economic activity, an optimal control approach would have failed to keep inflation expectations well anchored …

We respond to the challenge of explaining the Great Inflation by building a coherent framework in which both learning … Phillips curve as in Sargent's Conquest of American Inflation, but at all times takes into account that its view of the world … improves our ability to explain the Great Inflation with a learning model. Bayesian MCMC estimation results are encouraging and …

time’ is important both for the formulation of monetary policy and for the study of inflation behaviour. For the United ….0 to 7.1 percentage points to average UK inflation in the 1970s and 0.7–5.5 percentage points to inflation in the 1980s. …

This paper revisits the issue of what factors produced the macroeconomic policies that led to the Great Inflation of …--which claims that policymakers took a nonmonetary view of the inflation process--meets these criteria. Other explanations of the … Great Inflation are ruled out, with one exception (the output gap mismeasurement hypothesis), which supplements the monetary …

The volatile data for inflation, output, and interest rates in the United Kingdom prior to the 1990s, and the relative … macroeconomic stability associated with inflation targeting, provide a rich basis for discriminating between rival explanations for … inflation determination, estimated on quarterly UK data for 1959–2000. Our model features IS and Phillips curves based on …

In recent years, activist monetary policy rules responding to inflation and the level of economic activity have been … advanced as a means of achieving effective output stabilization without inflation. Advocates of such policies suggest that … capacity as the primary underlying cause of the 1970s inflation and suggests that apparent differences in the framework …

inflation, how well they might be anchored in the long run, and at what level. This methodology allows us then to identify a … for credibility. We apply this methodology to the US history of inflation since 1963 and examine how well our measure … inflation scares. …