TheCausesofInflation-FederalReserveBankofKansasCity.pdfVIP

1 The Causes of Inflation Frederic S. Mkhkin The problem of inflation has been of central concern to American poli- cymakers since the mid 1960s. Of particular concern has been the rise in the core, or sustained, inflation rate from below the 2 percent level in the early 1960s to near the double-digit level by the late 1970s. Since 1981 a rapid disinflation has occurred, bringing the current inflation rate down to below 5 percent. The recent decline in inflation has not b