Reducing Inflation: Motivation and StrategyChristina D. Romer, David H. Romer While there is ample evidence that high inflation is harmful, little is known about how best to reduce inflation or how far it should be reduced. In this volume, sixteen distinguished economists analyze the appropriateness of low inflation as a goal for monetary policy and discuss possible strategies for reducing inflation. Section I discusses the consequences of inflation. These papers analyze inflation's impact on the tax system, labor market flexibility, equilibrium unemployment, and the public's sense of well-being. Section II considers the obstacles facing central bankers in achieving low inflation. These papers study the precision of estimates of equilibrium unemployment, the sources of the high inflation of the 1970s, and the use of non-traditional indicators in policy formation. The papers in section III consider how institutions can be designed to promote successful monetary policy, and the importance of institutions to the performance of policy in the United States, Germany, and other countries. This timely volume should be read by anyone who studies or conducts monetary policy. |
Contents
1 | |
11 | |
Motivation and Strategy II Improving the Conduct of Monetary Policy | 193 |
Motivation and Strategy III The Contribution of Monetary Institutions | 305 |
Motivation and Strategy Contributors | 413 |
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Other editions - View all
Reducing Inflation: Motivation and Strategy Christina D. Romer,David H. Romer No preview available - 1997 |
Reducing Inflation: Motivation and Strategy Christina D. Romer,David H. Romer No preview available - 1997 |
Common terms and phrases
average benefits Brazil Bundesbank capital central bank coefficient confidence intervals constant counterfactual countries day-to-day rate deadweight loss debt delta-method Deutsche Bundesbank disinflation distortions distribution dynamic inconsistency Economic economists effects of inflation equation equilibrium exchange rate Federal Reserve Feldstein forecast fraction GDP deflator Germany Gregory Mankiw high inflation implies income increase individuals inflation rate institutions interest rate labor market lags long-run low inflation Mankiw menu costs monetary policy NAIRU natural rate nominal rigidities nominal wage cuts OECD optimal output panel paper percentage points period Phillips curve policymakers political price level price stability problem PSID questionnaire rate of inflation reaction function real wage changes reducing inflation regression response revenue Romer sample seigniorage short-term shortage measure specifications spline Standard errors suggests supply shocks target tax rate tion unem unemployed unemployment rate variables wage growth wage rigidity workers zero