Deflation and monetary policy in a historical perspective: remembering the past or being condemned to repeat it?
Abstract
"Inflation is currently low and stable in industrialized countries, but might deflation replace inflation as a major policy concern? We present a broad cross-country historical study of deflation over the past two centuries in order to shed light on current policy challenges. In the light of the relevant theoretical approaches, we empirically characterize 'good, bad and ugly' deflations, assess similarities between the current low-inflation environment and that of the gold standard period, and discuss lessons from the historical record as to policies to escape undesirable deflation and the relative merits of interest rate and monetary instruments." Copyright � CEPR, CES, MSH, 2005.Download Info
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Bibliographic Info
Article provided by CEPR & CES & MSH in its journal Economic Policy.
Volume (Year): 20 (2005)
Issue (Month): 44 (October)
Pages: 799-844
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Related research
Keywords:Other versions of this item:
- Michael D. Bordo & Andrew Filardo, 2004. "Deflation and Monetary Policy in a Historical Perspective: Remembering the Past or Being Condemned to Repeat It?," NBER Working Papers 10833, National Bureau of Economic Research, Inc.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lars E.O. Svensson, 1999.
"How should monetary policy be conducted in an era of price stability?,"
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- Svensson, Lars E O, 1999. "How Should Monetary Policy Be Conducted In An Era Of Price Stability?," CEPR Discussion Papers 2342, C.E.P.R. Discussion Papers.
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- Kenneth J. McLaughlin, 1999. "Are nominal wage changes skewed away from wage cuts?," Review, Federal Reserve Bank of St. Louis, issue May, pages 117-132.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Assenmacher-Wesche, Katrin & Gerlach, Stefan & Sekine, Toshitaka, 2008.
"Monetary factors and inflation in Japan,"
Journal of the Japanese and International Economies,
Elsevier, vol. 22(3), pages 343-363, September.
- Assenmacher-Wesche, Katrin & Gerlach, Stefan & Sekine, Toshitaka, 2008. "Monetary Factors and Inflation in Japan," CEPR Discussion Papers 6650, C.E.P.R. Discussion Papers.
- Katrin Assenmacher-Wesche & Stefan Gerlach & Toshitaka Sekine, 2007. "Monetary Factors and Inflation in Japan," Working Papers 2007-13, Swiss National Bank.
- Dieter Gerdesmeier & Barbara Roffia & Hans-Eggert Reimers, 2009.
"Asset price misalignments and the role of money and credit,"
Working Paper Series
1068, European Central Bank.
- Dieter Gerdesmeier & Hans‐Eggert Reimers & Barbara Roffia, 2010. "Asset Price Misalignments and the Role of Money and Credit," International Finance, Wiley Blackwell, vol. 13(3), pages 377-407, Winter.
- Gauti B. Eggertsson & Benjamin Pugsley, 2006.
"The Mistake of 1937: A General Equilibrium Analysis,"
Monetary and Economic Studies,
Institute for Monetary and Economic Studies, Bank of Japan, vol. 24(S1), pages 151-190, December.
- Gauti B. Eggertsson & Benjamin Pugsley, 2007. "The Mistake of 1937: A General Equilibrium Analysis," CFS Working Paper Series 2007/06, Center for Financial Studies.
- Michael D. Bordo, 2008. "An Historical Perspective on the Crisis of 2007-2008," NBER Working Papers 14569, National Bureau of Economic Research, Inc.
- Ulrich van Suntum & Metin Kaptan & Cordelius Ilgmann, .
"Reducing the lower bound on market interest rates,"
Working Papers
200103, Institute of Spatial and Housing Economics, Munster Universitary.
- Ulrich van Suntum & Metin Kaptan & Cordelius Ilgmann, 2011. "Reducing the Lower Bound on Market Interest Rates," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 41(2), pages 133-146, September.
- Goetz von Peter, 2005. "Debt-Deflation: Concepts, and a Stylised Model," Macroeconomics 0505001, EconWPA.
- Beckworth, David, 2007. "The postbellum deflation and its lessons for today," The North American Journal of Economics and Finance, Elsevier, vol. 18(2), pages 195-214, August.
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