The Great Inflation in the United States and the United Kingdom: Reconciling Policy Decisions and Data Outcomes

Riccardo DiCecio, Edward Nelson

NBER Working Paper No. 14895
Issued in April 2009

---- Acknowledgments ----

An earlier version of this paper was presented at the NBER Great Inflation Conference, Woodstock, Vermont, September 25-27, 2008. We thank Frank Smets and Rafael Wouters for providing the estimation code for Smets and Wouters (2007). We are grateful to Michael Bordo and Athanasios Orphanides (the conference organizers), Matthew Shapiro (our discussant), and conference and pre-conference attendees, for comments on the previous versions of this paper. We are also indebted to Leon Berkelmans, Christopher Erceg, Jesper Lindé, Andrew Levin, Christopher Neely, Ricardo Nunes, Christina Romer, David Wheelock, and seminar participants at the Federal Reserve Board for many useful suggestions. Charles Gascon, Luke Shimek, and Faith Weller provided research assistance. The views expressed in this paper are those of the authors and should not be interpreted as those of the Federal Reserve Bank of St. Louis, the Federal Reserve System, the Board of Governors, or the National Bureau of Economic Research.

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