Title:

Has the Cost of Fighting Inflation Fallen?, Research Paper 9606

PREVIOUS | NEXT

Has the Cost of Fighting Inflation Fallen?, Research Paper 9606

DATE: April 1996

PART OF: AUTHORS:

ABSTRACT: During the 1980s, many OECD countries adopted labor-market policies designed to enhance wage flexibility and reduce unemployment. They also attempted to bolster the credibility of their anti-inflation measures through exchange rate and fiscal policies. These measures should have lowered the costs associated with fighting inflation. In this paper, we compare sacrifice ratio measures of the cost of disinflation in the most recent OECD recession with measures for the mid-seventies and early-eighties recessions. Surprisingly, in the overwhelming majority of OECD countries, the cost of reducing inflation has increased rather than declined. This conclusion stands, even if we take into account that it may be more expensive to fight inflation at lower inflation rates.

Download (pdf) View Full Text

Share this page:


Diversity is critical to the Federal Reserve, and we are firmly committed to fostering a diverse and inclusive culture throughout the Federal Reserve System. Collections within FRASER contain historical language, content, and descriptions that reflect the time period within which they were created and the views of their creators. Certain collections contain objectionable content—for example, discriminatory or biased language used to refer to racial, ethnic, and cultural groups. These viewpoints and attitudes are inconsistent with our values, but the original descriptions are retained to ensure that they are not erased from the historical record.
Save & Share
less

De Kock, Gabriel and Ghaleb, Tanya E. "Has the Cost of Fighting Inflation Fallen?, Research Paper 9606," Research Papers (Federal Reserve Bank of New York) (April 1996). https://fraser.stlouisfed.org/title/6570/item/615521, accessed on March 27, 2023.

More Information
less

SUBJECTS:

THEMES: CLASSIFICATION:
  • lcc: HG136 .R45 no.9606
IDENTIFIERS:
  • oclc: 35093208
  • fip:fednrp:9606:
Metadata (XML)
Metadata (JSON)