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The Great Inflation Was Not Asymmetric: International Evidence

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  • DEAN SCRIMGEOUR

Abstract

The rise and fall of inflation during the Great Inflation were events of approximately equal duration in developed economies. Relying on data-driven methods, this paper shows the American experience, in which inflation fell more quickly than it rose, was anomalous. This suggests that theories explaining the asymmetry in the American data may not be so applicable to a broader sample of countries. Copyright (c) 2008 The Ohio State University.

Suggested Citation

  • Dean Scrimgeour, 2008. "The Great Inflation Was Not Asymmetric: International Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(4), pages 799-815, June.
    • Handle: RePEc:mcb:jmoncb:v:40:y:2008:i:4:p:799-815
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    1. Giorgio E. Primiceri, 2006. "Why Inflation Rose and Fell: Policy-Makers' Beliefs and U. S. Postwar Stabilization Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(3), pages 867-901.
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    4. Edward Nelson, 2005. "Monetary Policy Neglect and the Great Inflation in Canada, Australia, and New Zealand," International Journal of Central Banking, International Journal of Central Banking, vol. 1(1), May.
    5. Matteo Ciccarelli & Benoît Mojon, 2010. "Global Inflation," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 524-535, August.
    6. In-Koo Cho & Noah Williams & Thomas J. Sargent, 2002. "Escaping Nash Inflation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 1-40.
    7. Christina D. Romer & David Romer, 2002. "The evolution of economic understanding and postwar stabilization policy," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 11-78.
    8. Laurence Ball, 1994. "What Determines the Sacrifice Ratio?," NBER Chapters, in: Monetary Policy, pages 155-193, National Bureau of Economic Research, Inc.
    9. Timothy Cogley & Thomas J. Sargent, 2005. "The conquest of US inflation: Learning and robustness to model uncertainty," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(2), pages 528-563, April.
    10. Thomas Mayer, 1999. "Monetary Policy and the Great Inflation in the United States," Books, Edward Elgar Publishing, number 1601.
    11. J. Bradford DeLong, 1997. "America's Peacetime Inflation: The 1970s," NBER Chapters, in: Reducing Inflation: Motivation and Strategy, pages 247-280, National Bureau of Economic Research, Inc.
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    1. Edward Nelson, 2012. "A Review of Allan Meltzer’s A History of the Federal Reserve, Volume 2," International Journal of Central Banking, International Journal of Central Banking, vol. 8(2), pages 241-266, June.
    2. Malmendier, Ulrike M. & Botsch, Matthew J., 2020. "The Long Shadows of the Great Inflation: Evidence from Residential Mortgages," CEPR Discussion Papers 14934, C.E.P.R. Discussion Papers.

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