Panel Session II remarks, The Great Inflation: Lessons for Central Banks
This chapter presents remarks by Deputy Governor of the European Central Bank (ECB) Lucas Papademos. He first assesses alternative views concerning the determinants of the Great Inflation by comparing the inflation performance and the conduct of monetary policy in the United States and in a number of European countries. Papademos then summarizes the key lessons for monetary policy that can be drawn from the experience of the Great Inflation in the 1970s and the subsequent period of disinflation in the 1980s, which led to the establishment of a high degree of price stability on both sides of the Atlantic. Finally, he briefly explains that the lessons of the Great Inflation are embedded in the institutional framework and the monetary policy strategy of the ECB, and have guided the conduct of the ECB's monetary policy since the launch of the euro.
Recent professional affiliations:
2013 Visiting Professor of Public Policy, Harvard Kennedy School
2011 - 2012 Prime Minister of Greece
2011 Visiting Professor of the International Financial System,
Kennedy School of Government, Harvard University
2010 - Senior Fellow, Center for Financial Studies, Goethe University Frankfurt
2002 - 2010 Vice-President of the European Central Bank
1994 - 2002 Governor of the Bank of Greece
No funding has been provided for the preparation of my contribution to this NBER publication.