
Published online:
26 September 2013
Published in print:
15 June 2013
Online ISBN:
9780226043555
Print ISBN:
9780226066950
Contents
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6.1 Introduction 6.1 Introduction
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6.2 Brief Overview of Inflation Developments in Selected Industrial Countries in the Period 1959 to 1998 6.2 Brief Overview of Inflation Developments in Selected Industrial Countries in the Period 1959 to 1998
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6.2.1 Rise and Fall of the Bretton Woods Regime 6.2.1 Rise and Fall of the Bretton Woods Regime
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6.2.2 The Stylized Facts 6.2.2 The Stylized Facts
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6.2.3 Explanations of the Great Inflation 6.2.3 Explanations of the Great Inflation
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6.3 Sound Money and Price Stability in Germany 6.3 Sound Money and Price Stability in Germany
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6.3.1 The Legacy of the Bundesbank and Stability-Oriented Monetary Policy 6.3.1 The Legacy of the Bundesbank and Stability-Oriented Monetary Policy
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6.3.2 The Conduct of Policy under Monetary Targeting 6.3.2 The Conduct of Policy under Monetary Targeting
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Derivation of the Money Growth Target Derivation of the Money Growth Target
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From 1975 to 1978: The Learning Phase From 1975 to 1978: The Learning Phase
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From 1979 to 1985: The Strategy Bears Fruit From 1979 to 1985: The Strategy Bears Fruit
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The Last Test: German Reunification The Last Test: German Reunification
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Lessons Lessons
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6.4 Monetary Targeting as a Commitment Device 6.4 Monetary Targeting as a Commitment Device
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6.5 The Conduct of Monetary Policy and Monetary Policy Rules 6.5 The Conduct of Monetary Policy and Monetary Policy Rules
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6.5.1 Brief Reference to the Literature 6.5.1 Brief Reference to the Literature
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6.5.2 A Comparison of Empirically Estimated Policy Rules 6.5.2 A Comparison of Empirically Estimated Policy Rules
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6.5.3 The Role of Money Demand Shocks 6.5.3 The Role of Money Demand Shocks
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6.5.4 Summary 6.5.4 Summary
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6.6 Conclusion 6.6 Conclusion
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References References
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Comment Comment
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References References
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Discussion Discussion
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Chapter
6 Opting Out of the Great Inflation: German Monetary Policy after the Breakdown of Bretton Woods
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Pages
301–356
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Published:June 2013
Cite
OXFORD ACADEMIC STYLE
Beyer, Andreas, and others, 'Opting Out of the Great Inflation: German Monetary Policy after the Breakdown of Bretton Woods', in Michael D. Bordo, and Athanasios Orphanides (eds), The Great Inflation: The Rebirth of Modern Central Banking (Chicago, IL , 2013; online edn, Chicago Scholarship Online, 26 Sept. 2013), https://doi.org/10.7208/chicago/9780226043555.003.0009, accessed 6 May 2025.
CHICAGO STYLE
Beyer, Andreas, and others. "Opting Out of the Great Inflation: German Monetary Policy after the Breakdown of Bretton Woods." In The Great Inflation: The Rebirth of Modern Central Banking . Edited by Michael D. Bordo, and Athanasios Orphanides (eds). University of Chicago Press, 2013. Chicago Scholarship Online, 2013. https://doi.org/10.7208/chicago/9780226043555.003.0009.
Abstract
This chapter explains the monetary targeting framework followed by the German Bundesbank from 1974 to 1998, and relates the Bundesbank’s success in maintaining price stability and in anchoring inflation expectations to its strategy. The goal is to provide a historical account of the conduct of monetary policy, focusing especially on the first ten years of monetary targeting, from 1975 until the middle of the 1980s, when price stability was virtually reached in Germany.
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