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  • 标题:Monetary Policy Neglect and the Great Inflation in Canada, Australia, and New Zealand.
  • 本地全文:下载
  • 作者:Edward Nelson ; Federal Reserve Bank of St. Louis
  • 期刊名称:International Journal of Central Banking
  • 印刷版ISSN:1815-4654
  • 出版年度:2005
  • 卷号:2005
  • 期号:may
  • 出版社:IJCB Publications Fulfillment
  • 摘要:

    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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