The great inflation in the United States and the United Kingdom: reconciling policy decisions and data outcomes
Riccardo DiCecio and
Edward Nelson
No 2009-015, Working Papers from Federal Reserve Bank of St. Louis
Abstract:
We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an explanation valid for both countries. The explanation does not appeal to common shocks or to exchange rate linkages, but to the common doctrine underlying the systematic monetary policy choices in each country. The nonmonetary approach to inflation control that was already influential in the United Kingdom came to be adopted by the United States during the 1970s. We document our position by examining official policymaking doctrine in the United Kingdom and the United States in the 1970s, and by considering results from a structural macroeconomic model estimated using U.K. data.
Keywords: Inflation (Finance); Great Britain (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (14)
Downloads: (external link)
http://research.stlouisfed.org/wp/2009/2009-015.pdf (application/pdf)
Related works:
Chapter: The Great Inflation in the United States and the United Kingdom: Reconciling Policy Decisions and Data Outcomes (2013)
Working Paper: The Great Inflation in the United States and the United Kingdom: Reconciling Policy Decisions and Data Outcomes (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlwp:2009-015
Ordering information: This working paper can be ordered from
subscribe@stls.frb.org
Access Statistics for this paper
More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Anna Oates (anna.oates@stls.frb.org).