Controlling inflation is among the most important objectives of
economic policy. By maintaining price stability, policy makers are
able to reduce uncertainty, improve price-monitoring mechanisms,
and facilitate more efficient planning and allocation of resources,
thereby raising productivity.
This volume focuses on understanding the causes of the Great
Inflation of the 1970s and '80s, which saw rising inflation in many
nations, and which propelled interest rates across the developing
world into the double digits. In the decades since, the immediate
cause of the period's rise in inflation has been the subject of
considerable debate. Among the areas of contention are the role of
monetary policy in driving inflation and the implications this had
both for policy design and for evaluating the performance of those
who set the policy. Here, contributors map monetary policy from the
1960s to the present, shedding light on the ways in which the
lessons of the Great Inflation were absorbed and applied to today's
global and increasingly complex economic environment.
General
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