Political Pressures on Monetary Policy during the US Great Inflation
A historical and empirical analysis of the Federal Reserve’s motivations in conducting monetary policy during the 1970s. I find that the Fed allowed inflation to rise because there was no political support for the measures – raising interest rates and risking recession – necessary to bring inflation under control.
Weise, Charles L. “Political Pressures on Monetary Policy during the US Great Inflation.” American Economic Journal: Macroeconomics 4.2 (2012): 33-64.
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