…from Volcker to the GFC represents a significant break or regime change from the rest of the post-WWII period. Here’s a couple of interesting reviews of Fed policy that describe…

…GDP CPIall = year over year % change of CPI for all items. ED = policy rate prescribed by Effective Demand Monetary rule FF = Fed Funds rate 10year =…

…Volcker deflation, I didn’t hear much about tax based incomes policies. I was a discussant of a paper on the Polish transition from communism to a market economy. The author…

…I compared the changes to potential output around 3 recessions. I showed how potential GDP did not change much after the Volcker recession. I showed how potential output around the…

…comments about the expected inflation imp. I didn’t know about Bernanke et al 1999 and just looked at the Volcker deflation (which is alleged to show the power of expecations…

…the 1981 “double-dip,” which was engineered by the Volcker Fed. If the Fed similarly decided to raise rates aggressively in the next 6 – 9 months, or if there were…

…much warning of the 1981-82 “double dip” recession, which was engineered by Volcker’s aggressive tightening at the Fed. They aren’t designed to be infallible, but rather “necessary but not sufficient.”…

…2001. The high portion of the orange line where the UT index goes over 19% happened during the Volcker recession. That portion shows high spare capacity but low productivity growth….

…See this post for example of equation. The coefficients above were chosen to weed out some of the effect of the Volcker recession and to make inflation cross the effective…

…the Fed rate a lot which Volcker did Raise the inflation target, which would have been even less acceptable. Now low inflation in the advanced world may simply be a…