May 2022

The Anatomy of Single-Digit Inflation in the 1960s

Jeremy B. Rudd

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.

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

PDF: Full Paper

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Last Update: May 20, 2022