Some Like the Economy Hot: Or, Reviving the Monetarist/Keynesian Debate

Robert Hetzel ()
Additional contact information
Robert Hetzel: The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise

No 110, Studies in Applied Economics from The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise

Abstract: In 2017 and early 2018, inflation regularly fell below the FOMC's two-percent inflation target. To raise inflation, the FOMC pursued a policy of allowing growth to run above potential to create a positive output gap. A positive output gap would, it was assumed, create wage inflation, which would pass through to price inflation. This policy possessed the hallmarks of the activist policy of the 1970s. The question then arises of whether it will produce the same destabilizing go-stop cycle.

JEL-codes: E52 E58 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2018-06
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sites.krieger.jhu.edu/iae/files/2018/06/SA ... -the-Economy-Hot.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
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:ris:jhisae:0110

Access Statistics for this paper

More papers in Studies in Applied Economics from The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise Contact information at EDIRC.
Bibliographic data for series maintained by Steve H. Hanke ().