Journal Article

Inflation in 1972: A Cautionary Tale

Abstract: The path of inflation over the past two years looks strikingly similar to the path observed during the 1970s, when the Federal Open Market Committee shifted its focus away from fighting inflation before price pressures were fully under control. Although policymakers in both the 1970s and today have faced extraordinary challenges, future perceptions of current policy will likely be defined primarily by the outcome of the Committee’s attempts to curb inflation, rather than the circumstances surrounding it.

Keywords: Inflation; Monetary policy; Federal Open Market Committee (FOMC);

JEL Classification: E31; E2; E52;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Bulletin

Publication Date: 2022-07-01

Issue: July 1, 2022

Pages: 4