How inflation hawks escape expectations traps

Sylvain Leduc

Business Review, 2003, issue Q1, 13-20

Abstract: Why did inflation increase so dramatically from the 1960s to the 1970s? One possible theory is that once people started believing inflation would rise, the Fed was forced to validate those expectations by increasing the money supply. In \\"How Inflation Hawks Escape Expectations Traps,\\" Sylvain Leduc discusses this \\"expectations trap\\" hypothesis and uses a direct measure of expectations to see if the theory is consistent with the data.

Keywords: Inflation; (Finance) (search for similar items in EconPapers)
Date: 2003
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