Inflation, Monetary Policy
Intermediate Macroeconomics - UCLA - Econ 102
François Geerolf
December 2, 2020
Important Data about monetary policy
Gold Prices ($/Ounce) 1800-1972
Gold Prices ($/Ounce) 1970-2019
Gold Prices ($/Ounce) 1970-2019
Nixon Address, August 15, 1971
End of Bretton Woods
The end of Bretton Woods between 1971 and 1973 \(=\) start of fiat money.
Inflation targeting vs. exchange-rate targeting (and even better: Gold standard)
Now central banks have a target for inflation. Sometimes also have a “full employment” mandate, but targeting inflation is usually their most important task.
Of course the dynamics of inflation has considerably changed since.
U.S. Price Level 1920-2019
U.S. Price Level 1920-2019 (Log Scale)
U.S. Fed Funds Rate / Discount Rate (1914-2019)
Fed Chairmen / Chairwomen
Fears of hyperinflation
German Hyperinflation: Price Index
German Hyperinflation: Exchange Rates
German Hyperinflation in the 1920s
German Hyperinflation in the 1920s
Expenditure Shares (1912 - 1923)
Other Hyperinflations
Housing and Monetary Policy: 2000-2015
Low Federal Funds Rates
Fed VS ECB
Trichet rate increase
Hong Kong and Fed
Delinquency Rates on Mortgages: Prime, Subprime, Adjustable, Fixed
U.S. Real House Prices (1990-2013). Source: Shiller
Current Monetary Policy Issues
QE: Long Term Refinancing Operations
QE: Long Term Refinancing Operations
Bitcoin
Central bankers have become dominant holders of gvnt’ bonds
