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Inflation, Unemployment, and Monetary Policy
Robert M. Solow,John B. Taylor +1 more
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Friedman and Taylor as discussed by the authors discuss the relationship between price inflation and real economic activity and present their views on the dilemmas facing U.S. monetary policymakers and make both an intellectual contribution to macroeconmics and a practical contribution to the solution of a public policy question of central importance.Abstract:
edited and with an introduction by Benjamin M. Friedman The connection between price inflation and real economic activity has been a focus of macroeconomic research--and debate--for much of the past century. Although this connection is crucial to our understanding of what monetary policy can and cannot accomplish, opinions about its basic properties have swung widely over the years.Today, virtually everyone studying monetary policy acknowledges that, contrary to what many modern macroeconomic models suggest, central bank actions often affect both inflation and measures of real economic activity, such as output, unemployment, and incomes. But the nature and magnitude of these effects are not yet understood.In this volume, Robert M. Solow and John B. Taylor present their views on the dilemmas facing U.S. monetary policymakers. The discussants are Benjamin M. Friedman, James K. Galbraith, N. Gregory Mankiw, and William Poole. The aim of this lively exchange of views is to make both an intellectual contribution to macroeconmics and a practical contribution to the solution of a public policy question of central importance.read more
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Journal ArticleDOI
The persistence of inflation in the United States
Frederic Pivetta,Ricardo Reis +1 more
TL;DR: In this article, the persistence of inflation in the United States has been investigated over time using different measures and estimation procedures and they produce confidence intervals for their estimates as well as formal tests of unchanged persistence.
ReportDOI
Has U.S. Monetary Policy Changed? Evidence from Drifting Coefficients and Real-Time Data
TL;DR: In this paper, the authors studied the effect of changes in the behavior of the Fed's response to the real-time forecast of inflation in the second half of the 1970s and found that the response to inflation was strong before 1973 and gradually regained strength from the early 1980s onward.
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Escaping Nash Inflation
TL;DR: In this article, the authors show that the destination of the escape dynamics is an outcome associated with government discovery of too strong a version of the natural rate hypothesis, which is not sustainable as a self-confirming equilibrium but is visited recurrently.
Journal ArticleDOI
Has the Inflation Process Changed
TL;DR: This article found that the means of inflation processes have become smaller over the past two decades and that, allowing for these changes in the mean, their persistence has not declined much, and there is some evidence that the shifts in inflation expectations are the proximate cause of the changes in mean of inflation, and that policy-makers should focus on maintaining credibility and carefully monitoring inflation expectations for any indication that they are rising.