Favero, Carlo A; Rovelli, Riccardo - In: Journal of Money, Credit and Banking 35 (2003) 4, pp. 545-56
The rate of inflation in the U.S. has declined from an average of 4.5% in the period 1960-79 to an average of 3.6% in 1980-98. Between those two periods, the standard deviations of inflation and the output gap have also declined. These facts can be attributed to the interaction of three possible...
