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Unformatted text preview: B USINESS C YCLES A. Monetary Policy as a Source of Recessions B. Monetary Policy and Inflation III. T HE “L UCAS C RITIQUE ” AND C REDIBILITY A. The Lucas Critique B. Example: The 1968 Temporary Tax Surcharge and the Consumption Function C. The Volcker Disinflation and the Behavior of Inflation 1. Overview 2. How central bank credibility might affect the output costs of disinflation 3. Blanchard’s evidence from the Volcker disinflation D. “Anchored” Expectations 1. Overview 2. A simple model of anchored expectations 3. Implications 4. A concern: how long can this last?...
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This note was uploaded on 02/28/2012 for the course ECON 134 taught by Professor Davidromer during the Spring '12 term at University of California, Berkeley.
- Spring '12
- Monetary Policy