Reviewing a PDF by Alan Blinder and Jeremy B. Rudd, Arnold Kling writes:
It is an article of faith among economists that the 1970s inflation and the 1980s disinflation both came from monetary policy, but that does not make it a proven fact. Maybe we have too much faith. Instead, we should be willing to examine data and adopt a skeptical perspective...
Amen to that!
// Update (8 Sept 9:35 pm)
Steve Randy Waldman writes
I am writing in 2013 about choices made in 1973 because I think a mythology has developed around 1970s experience that is very harmful.
There seems to be a lot of re-thinking going on.
3 comments:
Here's some relevant food for thought.
http://www.asymptosis.com/did-the-baby-boom-labor-force-surge-cause-the-great-inflation.html
Cheers!
JzB
Jazz, I saw the post at Interfluidity and was tempted to parry it with this one from Chart Porn. For the life of me I cannot say why.
SRW's post was very interesting, but it would take a lot of pondering-time, and a lot of graphs, before I might find it convincing.
SRW again:
"I’m talking about the inflation of the 1970s. Sorry, Milton, I know you got a lot of mileage out of the line, but the great inflation was not at root a monetary phenomenon."
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