Chapter 18 Inflation: Theory and evidence

  title={Chapter 18 Inflation: Theory and evidence},
  author={Bennett T. Mccallum},
Publisher Summary This chapter presents a general overview of the subject of inflation, both in terms of relevant theory and evidence regarding competing hypotheses. During the years that have passed since the preparation of the ambitious survey article, the nature of research in monetary economics has changed considerably—(1) rational expectations has become the mainstream hypothesis concerning expectation behavior, (2) the Ricardian equivalence theorem has become a familiar notion in policy… CONTINUE READING