The U.S. economy: are analysts missing the point?

The conventional view on the U.S. economy is that economic growth above“potential” is bad for bonds since it spells inflation. The purpose of this note is to show thatfollowing the Volker deflation (l980-82), the policy regime changed, and greater economicstability obtained. JEL Classification: E43;...

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Bibliographic Details
Author: Nunes, João Marcus M.
Format: article
Status:Published version
Publication Date:1998
Country:Brasil
Institution:EDITORA 34
Repository:Revista de Economia Política
Language:English
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1121
Online Access:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1121
Access Level:Open access
Keyword:Taxas de juros
bond market
Fed
Interest rates
bond Market
Description
Summary:The conventional view on the U.S. economy is that economic growth above“potential” is bad for bonds since it spells inflation. The purpose of this note is to show thatfollowing the Volker deflation (l980-82), the policy regime changed, and greater economicstability obtained. JEL Classification: E43; E44; G10.