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• W47994630 abstract "The topic of this session is “Changing Views about Stabilization Policy: A Historical Perspective.” The Romers contribute to this topic by narrowing it. Mostly they use a narrative approach to buttress, refine, and extend the “Berkeley story” about post-World War II U.S. monetary policy.1 The Berkeley story is that the monetary policy authorities knew an approximately correct model of the macroeconomy in the 1950s, forgot it in the late 1960s and early 1970s, made bad policy as a result, then relearned the correct model in the 1980s and thereupon improved policy. The Romers say that by 1970 the Fed accepted the natural rate hypothesis2 and had appropriately modified its preferences by aiming to sustain unemployment at its best estimate of the natural rate of unemployment.3 But the natural rate is, at best, a slowly moving hidden variable obscured in noise. Adopting a theme of Athanasios Orphanides (2003, 2002), the Romers attribute the Fed’s" @default.
• W47994630 created "2016-06-24" @default.
• W47994630 creator A5002088217 @default.
• W47994630 date "2002-01-01" @default.
• W47994630 modified "2023-10-12" @default.
• W47994630 title "Commentary : the evolution of economic understanding and postwar stabilization policy" @default.
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