Working Paper

Inflation uncertainty and a test of the Friedman hypothesis


Abstract: This paper tests Friedman's (1977) hypothesis that increases in inflation uncertainty, ceteris paribus, may yield higher levels of unemployment. Tests are made using quarterly measures of inflation uncertainty taken from the ASA-NBER survey. Using the 1972-1984 period, we find general support for the hypothesis.

Status: Published in Journal of Macroeconomics, Summer 1986, 8(3), pp. 365-72

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 1985

Number: 1985-006