TY  - JOUR
AU  - Romer,Christina D.
TI  - Inflation and the Growth Rate of Output
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5575
PY  - 1996
Y2  - May 1996
UR  - http://www.nber.org/papers/w5575
L1  - http://www.nber.org/papers/w5575.pdf
N1  - Author contact info:
Christina D. Romer
Department of Economics
University of California, Berkeley
549 Evans Hall, #3880
Berkeley, CA 94720
Tel: 510/642-4317
Fax: 510/642-6615
E-Mail: cromer@econ.berkeley.edu
M2  - featured in NBER digest on 1996-09-01
AB  - This paper shows that inflation has depended strongly on the growth rate of output for most of the twentieth century.  Only in recent years has the deviation of output from trend become the predominant determinant of price behavior.  The paper also shows that the growth rate effect works primarily through materials prices, and that the declining importance of materials can explain why the growth rate effect has weakened over time.  Finally, the paper shows that the growth rate effect can explain why prices rose in the mid- and late- 1930s despite the fact that output was substantially below trend.
ER  -