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The Great Inflation of the 1970s Author info | Abstract | Publisher info | Download info | Related research | Statistics FABRICE COLLARD
HARRIS DELLAS
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The two leading explanations for the poor inflation performance during the 1970s are policy opportunism (Barro and Gordon 1983) and "inadvertently" bad monetary policy (Clarida, Gali, and Gertler 2000, Orphanides 2003). The main models of the latter category are that of Orphanides (loose monetary policy was the outcome of mis-perceptions about potential output rather than of inflation tolerance) and of Clarida, Gali, and Gertler (weak policy reaction to expected inflation led to indeterminacies). We show that both of these models can account for high and persistent inflation and also have satisfactory overall performance if an exceptionally large decrease in productivity took place at that time. Copyright 2007 The Ohio State University.
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Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking .
Volume (Year): 39 (2007)
Issue (Month): 2-3 (03)
Pages: 713-731
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Handle: RePEc:mcb:jmoncb:v:39:y:2007:i:2-3:p:713-731Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
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References listed on IDEAS Please 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.: Athanasios Orphanides & John C. Williams, 2002.
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Working Papers in Applied Economic Theory
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Other versions:
Athanasios Orphanides & John C. Williams, 2003.
"Imperfect Knowledge, Inflation Expectations, and Monetary Policy ,"
CFS Working Paper Series
2003/40, Center for Financial Studies.
[Downloadable!] Athanasios Orphanides & John C. Williams, 2003.
"Imperfect Knowledge, Inflation Expectations, and Monetary Policy ,"
NBER Working Papers
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"Imperfect knowledge, inflation expectations, and monetary policy ,"
Finance and Economics Discussion Series
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James Bullard & Stefano Eusepi, 2003.
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Computing in Economics and Finance 2003
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Other versions: Barro, Robert J. & Gordon, David B., 1983.
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Journal of Monetary Economics ,
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Nelson, Edward & Nikolov, Kalin, 2002.
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CEPR Discussion Papers
3458, C.E.P.R. Discussion Papers.
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Journal of Money, Credit and Banking ,
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Christopher J. Erceg and Andrew T. Levin, 2001.
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Other versions:
Christopher J. Erceg & Andrew T. Levin, 2001.
"Imperfect credibility and inflation persistence ,"
Finance and Economics Discussion Series
2001-45, Board of Governors of the Federal Reserve System (U.S.).
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"The Quest for Prosperity Without Inflation ,"
Working Paper Series
93, Sveriges Riksbank (Central Bank of Sweden).
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Athanasios Orphanides, 2000.
"The quest for prosperity without inflation ,"
Working Paper Series
15, European Central Bank.
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Other versions: Cukierman, Alex & Lippi, Francesco, 2005.
"Endogenous monetary policy with unobserved potential output ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 29(11), pages 1951-1983, November.
[Downloadable!] (restricted)
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Alex Cukierman & Francesco Lippi, 2004.
"Endogenous monetary policy with unobserved potential output ,"
Temi di discussione (Economic working papers)
493, Bank of Italy, Economic Research Department.
[Downloadable!] Alex Cukierman & Francesco Lippi, 2003.
"Endogenous Monetary Policy with Unobserved Potential Output ,"
CEIS Research Paper
26, Tor Vergata University, CEIS.
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"Endogenous Monetary Policy with Unobserved Potential Output ,"
CEPR Discussion Papers
3763, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Svensson, Lars E. O. & Woodford, Michael, 2003.
"Indicator variables for optimal policy ,"
Journal of Monetary Economics ,
Elsevier, vol. 50(3), pages 691-720, April.
[Downloadable!] (restricted)
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Svensson, Lars & Woodford, Michael, 2000.
"Indicator Variables for Optimal Policy ,"
Seminar Papers
688, Stockholm University, Institute for International Economic Studies.
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"Indicator Variables for Optimal Policy ,"
NBER Working Papers
7953, National Bureau of Economic Research, Inc.
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Working Paper Series
12, European Central Bank.
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"Indicator variables for optimal policy ,"
Proceedings ,
Federal Reserve Bank of San Francisco.
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"Some Evidence on the Importance of Sticky Prices ,"
NBER Working Papers
9069, National Bureau of Economic Research, Inc.
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Other versions: Richard Clarida & Jordi Galí & Mark Gertler, 2000.
"Monetary Policy Rules And Macroeconomic Stability: Evidence And Some Theory ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 115(1), pages 147-180, February.
[Downloadable!] (restricted)
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Clarida, Richard & Galí, Jordi & Gertler, Mark, 1998.
"Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory ,"
CEPR Discussion Papers
1908, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Richard Clarida & Jordi Gali & Mark Gertler, 1998.
"Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory ,"
NBER Working Papers
6442, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Richard Clarida & Jordi Galí & Mark Gertler, 1997.
"Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory ,"
Economics Working Papers
350, Department of Economics and Business, Universitat Pompeu Fabra, revised May 1999.
[Downloadable!] Clarida, R. & Gali, J. & Gertler, M., 1998.
"Monetary Policy Rules and Macroeconomic Stability: Evidence and some Theory ,"
Working Papers
98-01, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Athanasios Orphanides, 2001.
"Monetary policy rules, macroeconomic stability and inflation: a view from the trenches ,"
Working Paper Series
115, European Central Bank.
[Downloadable!]
Other versions:
Athanasios Orphanides, 2001.
"Monetary policy rules, macroeconomic stability and inflation: a view from the trenches ,"
Finance and Economics Discussion Series
2001-62, Board of Governors of the Federal Reserve System (U.S.).
[Downloadable!] Orphanides, Athanasios, 2004.
"Monetary Policy Rules, Macroeconomic Stability, and Inflation: A View from the Trenches ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 36(2), pages 151-75, April.
Ehrmann, Michael & Smets, Frank, 2003.
"Uncertain potential output: implications for monetary policy ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 27(9), pages 1611-1638, July.
[Downloadable!] (restricted)
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Ehrmann, M. & Smets, F., 2001.
"Uncertain Potential Output: Implications for Monetary Policy ,"
Papers
59, Quebec a Montreal - Recherche en gestion.
Michael Ehrmann & Frank Smets, 2001.
"Uncertain potential output: implications for monetary policy ,"
Working Paper Series
059, European Central Bank.
[Downloadable!] Michael Ehrmann and Frank Smets, 2001.
"Uncertain Potential Output: Implications for Monetary Policy ,"
Computing in Economics and Finance 2001
8, Society for Computational Economics.
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references Cited by : (explanations , Please 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.)
COLLARD, Fabrice & DELLAS, Harris, 2004.
"The New Keynesian Model with Imperfect Information and Learning ,"
IDEI Working Papers
273, Institut d'Économie Industrielle (IDEI), Toulouse.
[Downloadable!]
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