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Monetary Policy Neglect and the Great Inflation in Canada, Australia, and New Zealand Author info | Abstract | Publisher info | Download info | Related research | Statistics Edward Nelson
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This paper studies the Great Inflation in Canada, Australia, and New Zealand. Newspaper coverage and policymakers’ statements are used to analyze the views on the inflation process that led to the 1970s macroeconomic policies, and the different movement in each country away from 1970s views. I argue that to understand the course of policy in each country, it is crucial to use the monetary policy neglect hypothesis, which claims that the Great Inflation occurred because policymakers delegated inflation control to nonmonetary devices. This hypothesis helps explain why, unlike Canada, Australia and New Zealand continued to suffer high inflation in the mid-1980s. The delayed disinflation in these countries reflected the continuing importance accorded to nonmonetary views of inflation.
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Article provided by International Journal of Central Banking in its journal International Journal of Central Banking .
Volume (Year): 1 (2005)
Issue (Month): 1 (May)
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Paper Nelson, Edward, 2005.
"Monetary Policy Neglect and the Great Inflation in Canada, Australia, and New Zealand ,"
MPRA Paper
822, University Library of Munich, Germany.
[Downloadable!] Edward Nelson, 2004.
"Monetary policy neglect and the Great Inflation in Canada, Australia, and New Zealand ,"
Working Papers
2004-008, Federal Reserve Bank of St. Louis.
[Downloadable!] Find related papers by JEL classification: E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
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Orphanides, Athanasios & Williams, John C, 2005.
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