Did the great inflation occur despite policymaker commitment
Did the great inflation occur despite policymaker commitment to a Taylor rule?
Rate this book:
About This Book
"We study the hypothesis that misperceptions of trend productivity growth during the onset of the productivity slowdown in the U.S. caused much of the great inflation of the 1970s. We use the general equilibrium, sticky price framework of Woodford (2003), augmented with learning using the techniques of Evans and Honkapohja (2001). We allow for endogenous investment as well as explicit, exogenous growth in productivity and the labor input. We assume the monetary policymaker is committed to using a Taylortype policy rule. We study how this economy reacts to an unexpected change in the trend productivity growth rate under learning. We find that a substantial portion of the observed increase in inflation during the 1970s can be attributed to this source"--Federal Reserve Bank of St. Louis web site.
Buy This Book
As an Amazon Associate and Bookshop.org affiliate, BookOrb earns from qualifying purchases.
Write a Review
Sign in to write a review.
More by James Bullard
A leisurely reading of the lif
A leisurely reading of the life-cycle consumption data
Learning and the great moderat
Learning and the great moderation
Monetary policy, determinacy,
Monetary policy, determinacy, and learnability in a two-block world economy
Monetary policy, determinacy,
Monetary policy, determinacy, and learnability in the open economy
Monetary policy, judgment and
Monetary policy, judgment and near-rational exuberance
Near-rational exuberance
Near-rational exuberance