The great inflation of the seventies
Subtitle: what really happened?
By: Edward Nelson.
Contributors: Federal Reserve Bank of St. Louis.
Series: Working paper ;; 2004-001A; Working paper (Federal Reserve Bank of St. Louis : Online) ;; 2004-001A.
Publisher: Federal Reserve Bank of St. Louis
Published: 2004
Place of publication: [St. Louis, Mo.]
Language: eng
Format: Electronic resource
Subjects: Inflation (FInance) -- United States -- History.; Monetary policy -- United States -- History.
Description: "This paper revisits the issue of what factors motivated the macroeconomic policies that led to the Great Inflation of the 1970s.  A satisfactory explanation must be consistent with (1) the estimated monetary policy reaction function; (2) the timing patterns relating monetary policy developments and inflation; and (3) the record of economic views (manifested in statements by policymakers and prominent financial commentators).  It is argued that the monetary policy neglect hypothesis--which claims that policymakers took a nonmonetary view of the inflation process--meets all three criteria.  Other explanations are ruled out, with one exception (the output gap mismeasurement hypothesis), which supplements the monetary policy neglect hypothesis.  This conclusion is based on a study of the Great Inflation in both the U.K. and the U.S., and draws on both quantitative and archival evidence, particularly news coverage"--Federal Reserve Bank of St. Louis web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.