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|Title:||Perhaps the FOMC did what it said it did: An alternative interpretation of the Great Inflation |
Tinsley, P. A.
|Issue Date:||2007 |
|Series/Report no.:||Bank of Canada Working Paper 2007,19|
|Abstract:||This paper uses real-time briefing forecasts prepared for the Federal Open Market Committee (FOMC) to provide estimates of historical changes in the design of U.S. monetary policy and in the implied central-bank target for inflation. Empirical results support a description of policy with an effective inflation target of roughly 7 percent in the 1970s. Moreover, the evidence suggests that mismeasurement of the degree of economic slack was largely irrelevant for explaining the Great Inflation while favouring a passive-policy description of monetary policy. FOMC transcripts provide a neglected interpretation of the source of passive policyintermediate targeting of monetary aggregates.|
|Subjects:||Central bank research|
Monetary policy implementation
|Document Type:||Working Paper|
|Appears in Collections:||Bank of Canada Working Papers|
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