TY  - JOUR
AU  - DiCecio, Riccardo
AU  - Nelson, Edward
TI  - The Great Inflation in the United States and the United Kingdom: Reconciling Policy Decisions and Data Outcomes
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14895
PY  - 2009
Y2  - April 2009
DO  - 10.3386/w14895
UR  - http://www.nber.org/papers/w14895
L1  - http://www.nber.org/papers/w14895.pdf
N1  - Author contact info:
Riccardo DiCecio
Federal Reserve Bank of St. Louis
Research Division
P.O. Box 442
St. Louis, MO 63166-0442
Tel: 314-444-8806
Fax: 314-444-8731
E-Mail: Riccardo.DiCecio@stls.frb.org

Edward Nelson
Federal Reserve Board
Mail Stop 76, Monetary Affairs
20th and C Streets, N.W.
Washington, DC 20551
E-Mail: Edward.M.Nelson@frb.gov
M1  - published as Riccardo DiCecio, Edward Nelson. "The Great Inflation in the United States and the United Kingdom: Reconciling Policy Decisions and Data Outcomes," in Michael D. Bordo and Athanasios Orphanides, editors, "The Great Inflation: The Rebirth of Modern Central Banking" University of Chicago Press (2013)

M3  - presented at "The Great Inflation Conference", September 25-27, 2008
AB  - We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an explanation valid for both countries.  The explanation does not appeal to common shocks or to exchange rate linkages, but to the common doctrine underlying the systematic monetary policy choices in each country.  The nonmonetary approach to inflation control that was already influential in the United Kingdom came to be adopted by the United States during the 1970s.  We document our position by examining official policymaking doctrine in the United Kingdom and the United States in the 1970s, and by considering results from a structural macroeconomic model estimated using U.K. data.
ER  -