US markets unconvinced by 1980s inflation fall

Financial markets were sceptical of the Federal Reserve's commitment to low inflation even after the period of disinflation in the early 1980s, research published by the Kansas City Federal Reserve finds.

The research comes to this conclusion by studying the time the time variation of the Fed's inflation target between 1960 and 2004 using both macro and yield curve data.

To read the research, click here

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