The rise of inflation targeting.

This paper discusses the interactions between politics and economic ideas leading to the adoption of inflation targeting in the United States. In the gold standard era, farmers' vulnerability to falling prices made price‐level stabilization a salient political and social concern. Economists of the p...

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Publicado en:Southern Economic Journal Vol. 91; no. 4; pp. 1229 - 1247
Autor principal: Binder, Carola
Formato: Artículo
Publicado: Wiley-Blackwell Apr2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The rise of inflation targeting.
      aug:
        au: Binder, Carola
        affil: School of Civic Leadership, University of Texas at Austin, Austin Texas, , USA
      su:
        United States
        United States. Congress
        Price inflation
        Trust
        Political science
        Economic policy
        Inflation targeting
        Monetary policy
        Price regulation
        Government accountability
      sug:
        subj:
          Price inflation
          Trust
          Political science
          Economic policy
          United States
          United States. Congress
          Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors
          Legislative Bodies
          Inflation targeting
          Monetary policy
          Price regulation
          Government accountability
      keyword:
        federal reserve
        inflation
        inflation targeting
        Irving Fisher
        monetary policy
        rules versus discretion
        federal reserve
        inflation
        inflation targeting
        Irving Fisher
        monetary policy
        rules versus discretion
      ab: This paper discusses the interactions between politics and economic ideas leading to the adoption of inflation targeting in the United States. In the gold standard era, farmers' vulnerability to falling prices made price‐level stabilization a salient political and social concern. Economists of the progressive era honed in on price‐level stabilization as a key to promoting prosperity and social justice. Irving Fisher, in alliance with farm interests, helped members of Congress introduce price‐level stabilization bills that, while unsuccessful, introduced the possibility that a price‐level stabilization mandate might be a viable alternative to a gold standard. In the postwar years, the Great Inflation and Volcker disinflation set the stage for the rise of inflation targeting by highlighting the benefits of credibility, transparency, and expectations management. Tensions inherent in the implementation of inflation targeting—including its position in the "rules versus discretion" debate—have become more pronounced since the post‐COVID run‐up in inflation.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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