IDEAS home Printed from https://ideas.repec.org/a/fip/fedbne/y1993isepp33-44.html
   My bibliography  Save this article

What inflation policy do American voters want, and do they get it?

Author

Listed:
  • Daniel J. Richards

Abstract

Inflation at the time of the 1992 election was at its lowest level in 20 years. This fact might have been expected to give the incumbent Administration a significant advantage, since most previous research regarding voters’ economic preferences has found that American voters have a strong preference for low inflation and a great willingness to tolerate unemployment to reduce inflation. Thus, the 1992 election results raise the possibility that voter preferences either have changed or were mistakenly estimated earlier. ; The author’s goal is to obtain some estimates of the policies and inflation goals that voters deem optimal. He then uses these estimates of voters’ preferred policy outcomes to determine the price that voters are willing to pay to achieve their desired inflation rate. His findings suggest that strong anti-inflation policies are politically quite feasible.

Suggested Citation

  • Daniel J. Richards, 1993. "What inflation policy do American voters want, and do they get it?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 33-44.
  • Handle: RePEc:fip:fedbne:y:1993:i:sep:p:33-44
    as

    Download full text from publisher

    File URL: http://www.bostonfed.org/economic/neer/neer1993/neer593c.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Chappell, Henry W, Jr, 1990. "Economic Performance, Voting, and Political Support: A Unified Approach," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 313-320, May.
    2. Canzoneri, Matthew B, 1985. "Monetary Policy Games and the Role of Private Information," American Economic Review, American Economic Association, vol. 75(5), pages 1056-1070, December.
    3. Barro, Robert J. & Gordon, David B., 1983. "Rules, discretion and reputation in a model of monetary policy," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 101-121.
    4. Benjamin M. Friedman, 1984. "Lessons from the 1979-1982 Monetary Policy Experiment," NBER Working Papers 1272, National Bureau of Economic Research, Inc.
    5. Backus, David K & Kehoe, Patrick J, 1992. "International Evidence of the Historical Properties of Business Cycles," American Economic Review, American Economic Association, vol. 82(4), pages 864-888, September.
    6. MacRae, C Duncan, 1977. "A Political Model of the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 239-263, April.
    7. Kane, Edward J., 1980. "Politics and Fed policymaking : The more things change the more they remain the same," Journal of Monetary Economics, Elsevier, vol. 6(2), pages 199-211, April.
    8. Richards, Daniel J., 1988. "Some evidence on the inflationary bias of macroeconomic policy," Journal of Macroeconomics, Elsevier, vol. 10(3), pages 435-447.
    9. Garman, David M & Richards, Daniel J, 1989. "Policy Rules, Inflationary Bias, and Cyclical Stability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(4), pages 409-421, November.
    10. Havrilesky, Thomas, 1988. "Monetary Policy Signaling from the Administration to the Federal Reserve," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 20(1), pages 83-101, February.
    11. Friedman, Milton, 1984. "Lessons from the 1979-82 Monetary Policy Experiment," American Economic Review, American Economic Association, vol. 74(2), pages 397-400, May.
    12. Franco Modigliani, 1977. "The monetarist controversy; or, should we forsake stabilization policies?," Economic Review, Federal Reserve Bank of San Francisco, issue Spr suppl, pages 27-46.
    13. Friedman, Benjamin M, 1984. "Lessons from the 1979-82 Monetary Policy Experiment," American Economic Review, American Economic Association, vol. 74(2), pages 382-387, May.
    14. Chappell, Henry W, Jr, 1983. "Presidential Popularity and Macroeconomic Performance: Are Voters Really So Naive?," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 385-392, August.
    15. McCallum, Bennett T, 1984. "Monetarist Rules in the Light of Recent Experience," American Economic Review, American Economic Association, vol. 74(2), pages 388-391, May.
    16. repec:cup:apsrev:v:79:y:1985:i:01:p:10-27_22 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Inflation (Finance);

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedbne:y:1993:i:sep:p:33-44. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio). General contact details of provider: http://edirc.repec.org/data/frbbous.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.