Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55643
Authors: 
Ireland, Peter N.
Year of Publication: 
2005
Series/Report no.: 
Working paper series // Federal Reserve Bank of Boston 05-13
Abstract: 
This paper estimates a New Keynesian model to draw inferences about the behavior of the Federal Reserve's unobserved inflation target. The results indicate that the target rose from 1-1/4 percent in 1959 to over 8 percent in the mid-to-late 1970s before falling back below 2-1/2 percent in 2004. The results also provide some support for the hypothesis that over the entire postwar period, Federal Reserve policy has systematically translated short-run price pressures set off by supply-side shocks into more persistent movements in inflation itself, although considerable uncertainty remains about the true source of shifts in the inflation target.
JEL: 
E31
E32
E52
Document Type: 
Working Paper

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