The incredible Volcker disinflation
By: Marvin Goodfriend, Robert King.
Contributors: King, Robert G.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11562; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11562.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Volcker, Paul A.; Monetary policy -- United States -- History -- 20th century.; Deflation (Finance) -- United States -- History -- 20th century.; Monetary policy -- United State -- Econometric models.; Deflation (Finance) -- United States -- Econometric models.
Description: "Using a simple modern macroeconomic model, we argue that the real effects of the Volcker disinflation in the early 1980s were mainly due to imperfect credibility, evident in volatility and stubbornness of long-term interest rates.  Studying recently released transcripts of the Federal Open Market Committee, we find-- to our surprise-- that Volcker and other FOMC members also regarded long-term interest rates as key indicators of inflation expectations and of their disinflationary policy's credibility.  We also consider the interplay of monetary targets, operating procedures, and credibility during the Volcker disinflation"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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