Was the Disinflation of the Early 1980s Anticipated?

19 Pages Posted: 15 Nov 2012

See all articles by Jed DeVaro

Jed DeVaro

California State University, East Bay

Michael Dotsey

Federal Reserve Bank of Philadelphia

Date Written: 1995

Abstract

The disinflationary episode of the early 1980s was dramatic in the magnitude of the decline in inflation as well as the significant loss of output. Also, the disinflationary policy was announced and carried out over a three-year period. Thus, this episode has the potential to test competing theories of the linkage between economic activity and nominal disturbances. Discriminating among theories depends crucially on whether disinflation was anticipated and whether the change in Federal Reserve policy was expected.

Suggested Citation

DeVaro, Jed and Dotsey, Michael, Was the Disinflation of the Early 1980s Anticipated? (1995). FRB Richmond Economic Quarterly, vol. 81, no. 4, Fall 1995, pp. 41-59. Available at SSRN: https://ssrn.com/abstract=2129322

Jed DeVaro (Contact Author)

California State University, East Bay ( email )

25800 Carlos Bee Boulevard
Hayward, CA California 94542
United States
1(510)885-3289 (Phone)

HOME PAGE: http://www2.cbe.csueastbay.edu/fac_page/final/index.php?id=308

Michael Dotsey

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States
804-697-8201 (Phone)
804-697-8255 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
13
Abstract Views
455
PlumX Metrics