Perhaps the FOMC did what it said it did: An alternative interpretation of the Great Inflation

Arbeitspapier

This paper uses real-time briefing forecasts prepared for the Federal Open Market Committee (FOMC) to provide estimates of historical changes in the design of U.S. monetary policy and in the implied central-bank target for inflation. Empirical results support a description of policy with an effective inflation target of roughly 7 percent in the 1970s. Moreover, the evidence suggests that mismeasurement of the degree of economic slack was largely irrelevant for explaining the Great Inflation while favouring a passive-policy description of monetary policy. FOMC transcripts provide a neglected interpretation of the source of passive policyintermediate targeting of monetary aggregates.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Canada Working Paper ; No. 2007-19

Classification and Topics

• Classification: Wirtschaft
• Subject: Central bank research ; Monetary aggregates ; Monetary policy implementation ; Geldpolitik ; Inflation Targeting ; Inflation ; Asymmetrische Information ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kozicki, Sharon ; Tinsley, P. A.
• Event: Veröffentlichung
• (who): Bank of Canada
• (where): Ottawa
• (when): 2007

Further information

• DOI: doi:10.34989/swp-2007-19
• Handle: http://hdl.handle.net/10419/53933
• Last update: 10.03.2025, 11:43 AM CET