Skip to main content
Article
Slowing Monetary Growth Since 1984: A Public Choice Explanation
Public Choice
  • Tony Caporale, University of Dayton
  • Dwight R. Lee, University of Georgia
  • Richard K. Vedder, Ohio University - Main Campus
Document Type
Article
Publication Date
4-1-1997
Abstract
Until about 1984, the U.S. monetary base typically grew at an accelerating rate. Since then, that acceleration has stopped. Modern evidence suggests that the Federal Reserve responds to political pressure. We present empirical evidence supporting the hypothesis that reduced monetary base growth reflects the fact that the political advantages of price inflation have been significantly reduced by the tax indexation provisions of the Economic Recovery Tax Act of 1981.
Inclusive pages
127-137
ISBN/ISSN
0048-5829
Publisher
Kluwer Academic Publishers
Peer Reviewed
Yes
Citation Information
Tony Caporale, Dwight R. Lee and Richard K. Vedder. "Slowing Monetary Growth Since 1984: A Public Choice Explanation" Public Choice Vol. 91 Iss. 2 (1997)
Available at: http://works.bepress.com/tony_caporale/21/