Stanley Fischer

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This paper focuses on key issues that arise in considering the adoption of long-run price stability as the or a goal of monetary policy. The first section sets the background by discussing the allocative costs of inflation. The second and third sections consider the Phillips curve and the growth-inflation tradeoffs, respectively. The fourth section asks why(More)
Much of the new growth literature stresses countly characteristics, such as education levels or political stability, as the dominant determinant of growth. However, growth rates are highly unstable over time, with a correlation across decades of .1 to .3, while country characteristics are stable, with cross-decade correlations of .6 to .9. Shocks,(More)
The paper discusses several issues related to how monetary policy should be conducted in an era of price stability. Low in‡ation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable loss function (corresponding to ‡exible in‡ation targeting) is discussed, including the index and level for the(More)
Using polling data for 31869 households in 38 countries and allowing for country effects, we show that the poor are more likely than the rich to mention inflation as a top national concern. This result survives several robustness checks. We also find direct measures of improvements in well-being of the poor – the change in their share in national income,(More)
In this paper we investigate the empirical relationship between four measures of central bank independence and macroeconomic performance. We look at both the mean and the variance of output and inflation for twenty industrial countries (Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New(More)
It is argued that formal econometric work, where elaborate technique is used to apply theory to data or isolate the direction of causal relationships when they are not obvious a priori,virtually always fails. The only empirical research that has contributed to thinking about substantive issues and the development of economics is pragmatic empirical work,(More)
Using economic rates of return from World Bank-funded investments, we investigate how country characteristics and policies that influence aggregate performance affect investment productivity. Controlling for other characteristics, countries with undistorted (distorted) macroeconomic, exchange rate, trade and pricing policies have highly productive(More)