Monetary policy neglect and the great inflation in Canada, Australia, and New Zealand
By: by Edward Nelson.
Contributors: Federal Reserve Bank of St. Louis.
Series: Working paper ;; 2004-008A; Working paper (Federal Reserve Bank of St. Louis : Online) ;; 2004-008A.
Publisher: Federal Reserve Bank of St. Louis
Published: 2004
Place of publication: [St. Louis, Mo.]
Language: eng
Format: Electronic resource
Subjects: Monetary policy -- Canada.; Monetary policy -- Australia.; Monetary policy -- New Zealand.; Inflation (Finance) -- Canada.; Inflation (Finance) -- Australia.; Inflation (Finance) -- New Zealand.
Description: "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 movement in each country away from 1970s views.  I argue that to understand the course of policy in each country, it is crucial to use the monetary policy neglect hypothesis, which claims that the Great Inflation occurred because policymakers delegated inflation control to nonmonetary devices.  This hypothesis helps explain why, unlike Canada, Australia, and New Zealand continued to suffer high inflation in the mid-1980s.  The delayed disinflation in these countries reflected the continuing importance accorded to nonmonetary views of inflation"--Federal Reserve Bank of St. Louis web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.