Granville Remembering Inflation

Course Book
ISBN: 978-1-4008-4644-3
Verlag: De Gruyter
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 296 Seiten, Web PDF

Why we need to heed the lessons of high inflation

Today's global economy, with most developed nations experiencing very low inflation, seems a world apart from the "Great Inflation" that spanned the late 1960s to early 1980s. Yet, in this book, Brigitte Granville makes the case that monetary economists and policymakers need to keep the lessons learned during that period very much in mind, lest we return to them by making the same mistakes we made in the past.

Granville details the advances in macroeconomic thinking that gave rise to the "Great Moderation"—a period of stable inflation and economic growth, which lasted from the mid-1980s through the most recent financial crisis. She makes the case that the central banks' management of monetary policy—hinging on expectations and credibility—brought about this period of stability, and traces the roots of this success back to the eighteenth-century foundations of modern monetary thought.

Tackling fundamental questions such as the causes of inflation and its relation to unemployment and growth, the natural rate of inflation hypothesis, the fiscal theory of the price level, and the proper goals of central banks, the book aims above all to demonstrate the dangers of forgetting the role of credibility in establishing sound monetary policy. With the lessons of the past firmly in mind, Granville presents stimulating ideas and proposals about inflation-targeting principles, which provide tools for present-day monetary authorities dealing with the forces of globalization, mercantilism, and reserve accumulation.

Autoren/Hrsg.

Granville, Brigitte

Fachgebiete

• Wirtschaftswissenschaften Volkswirtschaftslehre Volkswirtschaftslehre Allgemein Makroökonomie
• Wirtschaftswissenschaften Volkswirtschaftslehre Volkswirtschaftslehre Allgemein Geldwirtschaft, Währungspolitik
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Bankwirtschaft
• Wirtschaftswissenschaften Volkswirtschaftslehre Volkswirtschaftslehre Allgemein Wirtschaftstheorie, Wirtschaftsphilosophie
• Sozialwissenschaften Politikwissenschaft Regierungspolitik Wirtschafts- und Finanzpolitik
• Wirtschaftswissenschaften Wirtschaftswissenschaften Wirtschaftsgeschichte
• Wirtschaftswissenschaften Volkswirtschaftslehre Wirtschaftspolitik, politische Ökonomie

Inhaltsverzeichnis

Preface ix

Acronyms xv

Chapter 1 The End of a Mirage

More Money Increases Inflation but Not Employment 1

Chapter 2 Origins of Inflation

Monetary, Fiscal, and Financial Links 33

Chapter 3 Ending Inflation Without Prolonged Recession

Introducing Credibility 54

Chapter 4 The Coordination of Monetary and Fiscal Policy 93

Chapter 5 Who Is Voting for Low Inflation and Why? 125

Chapter 6 Monetary and Financial Stability

Conflict or Complementarity 154

Chapter 7 Inflation in an Open World

Does That Change the Rules? 186

Conclusion

Adapting to Expectations 214

References 223

Index 255

Über Autor(innen)

Brigitte Granville is professor of international economics and economic policy at Queen Mary University of London. Her books include Sovereign Debt: Origins, Crises, and Restructuring.