Working Paper

The Anatomy of Single-Digit Inflation in the 1960s

Abstract: Recently, the experience of the 1960s—when the U.S. inflation rate rose rapidly and persistently over a comparatively short period—has been invoked as a cautionary tale for the present. An analysis of this period indicates that the inflation regime that prevailed in the 1960s was different in several key regards from the one that prevailed on the eve of the pandemic. Hence, there are few useable lessons to be drawn from this experience, save that monetary policymaking remains a difficult undertaking.

Keywords: Great Inflation; Martin Fed; Volcker disinflation; Inflation dynamics;

JEL Classification: E52; N12; E31;

https://doi.org/10.17016/FEDS.2022.029

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: Finance and Economics Discussion Series

Publication Date: 2022-05-20

Number: 2022-029