Price Stability and Economic Growth
President and Chief Executive Officer of the Federal Reserve Bank of St. Louis Thomas C. Meltzer welcomes participants to the Bank’s Twentieth Annual Economic Policy Conference, “Price Stability and Economic Growth.” He notes that a conference volume like this one, seemingly esoteric to the outsider, can potentially change how economists—and ultimately policymakers—think about and implement monetary policy.
The authors find that higher rates of inflation tend to reduce the real rates of return received by savers in a variety of markets.
Commentary on "Inflation, Financial Markets, and Capital Formation" by Sangmok Choi, Bruce D. Smith, and John H. Boyd.
Commentary on "Inflation, Financial Markets, and Capital Formation" by Sangmok Choi, Bruce D. Smith, and John H. Boyd.
The authors summarize the recent empirical work on the growth effects of monetary policy instruments and compare the empirical findings with the implications of quantitative models in which monetary policy can affect growth rates.
Commentary on "Inflation, Growth, and Financial Intermediation" by V.V. Chari, Larry E. Jones, and Rodolfo E. Manuelli.
Commentary on "Inflation, Growth, and Financial Intermediation" by V.V. Chari, Larry E. Jones, and Rodolfo E. Manuelli.
Economic models with multiple equilibria have become increasingly useful in analyzing volatility in financial markets and in business cycles. In many of these models, indeterminacy is a result of incomplete financial markets or technological nonconvexities. In this article, the authors identify economic policy discretion to be another distinct cause of indeterminate equilibrium and examine how discretion affects the number of equilibria, as well as their volatility.
Commentary on "Discretion, Rules and Volatility" by Costas Azariadis and Vincenzo Galasso.
Commentary on "Discretion, Rules and Volatility" by Costas Azariadis and Vincenzo Galasso.
The authors construct a small-scale modern macroeconomic model to study the effects of alternative monetary and fiscal policies in a manner consistent with Lucas’ recommendations.
Commentary on "Inflation Targeting in a St. Louis Model of the 21st Century" by Robert G. King and Alexander L. Wolman.
Commentary on "Inflation Targeting in a St. Louis Model of the 21st Century" by Robert G. King and Alexander L. Wolman.
The authors summarize some recent results in the literature on search-theoretic models of international currency. They think that models in this class will eventually prove useful for studying important issues in international monetary economics.
Commentary on "Search-Theoretic Models of International Currency" by Alberto Trejos and Randall Wright.
Commentary on "Search-Theoretic Models of International Currency" by Alberto Trejos and Randall Wright.
The authors characterize the literature on inflation and growth. Aware of the limits of their comparative advantage, they do not intend to do a general survey of the literature. Instead, they look at the aspects of the literature that motivated them to pursue one particular angle in their own recent work: the behavior of growth before, during, and after discrete high inflation crises.
Commentary on "Inflation and Growth: In Search of a Stable Relationship" by Michael Bruno and William Easterly.
Commentary on "Inflation and Growth: In Search of a Stable Relationship" by Michael Bruno and William Easterly.
The academic literature contains a lot of theoretical work on the costs of inflation. This analysis provides a presumption that inflation is a bad idea, but the case is not decisive without supporting empirical findings.
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