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 …

condition, we find that the appropriate response to the exchange rate is captured by the expected inflation term, provided that … the response coefficient and the inflation horizon are optimized. When uncovered interest parity is relaxed, there appears …

This paper studies the Great Inflation in Canada, Australia, and New Zealand. Newspaper coverage and policymakers …' statements are used to analyze the views on the inflation process that led to the 1970s macroeconomic policies, and the different … to use the monetary policy neglect hypothesis, which claims that the Great Inflation occurred because policymakers …

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. …

inflation or a guide to policy. The explanation proposed by Sargent (1999) for the US Great Inflation is therefore unlikely to … account for the Great Inflation in the UK. (2) The proposition that inflation is a monetary phenomenon is fully consistent …

justified empirically. Both the relation between money and inflation, and between money and aggregate demand, are considered …. Regarding the first relation, it is argued that both the mean and the dynamics of inflation in present-day models are governed … monetary aggregates and inflation in no way requires a direct channel connecting money and inflation. The relevance of money …

incomes policy as the primary weapon against inflation; Sterling M3 targeting in the late 1970s and early 1980s; moves in the … inflation targeting from October 1992. This Paper estimates simple interest rate reaction functions, or ‘Taylor rules’, for … different UK monetary policy regimes. The inflation targeting regime that began in 1992 appears to be the only period that is …

This paper argues that the inflation targeting regime prevailing in the United Kingdom is not the result of a change in …. Instead, the crucial underpinning of U.K. inflation targeting has been an overhaul of doctrine - a changed view of the … inflation dynamics. Contrary to conventional wisdom, changing views on the expected-inflation term in the Phillips curve do not …