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1970s' United States would not have prevented the Great Inflation. We show that a standard policy counterfactual suggests … that the Bundesbank – which is near-universally credited for sparing West Germany the Great Inflation – would also not have … been able to prevent the Great Inflation in the United States. The sheer implausibility of this result sounds a cautionary …
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-of-sample predictions for inflation, unemployment, and the federal funds rate for 2018. As the reader will soon realize, there is a lot more …
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