This is a very interesting analysis, but I have my doubts about whether the sample is sufficient to support such strong conclusions. In particular, the trajectory of the deflator raises concerns: it does not appear to converge to any steady state. This could simply be the result of (a) model misspecification, or (b) the choice of the 1970s as the sample period.
I'm just waiting for Nixonian wage and price controls if inflation keeps ripping https://en.wikipedia.org/wiki/Nixon_shock .
This might be not only a case of history rhyming, but just outright repeating!
No one does Big Government better than Republicans ... after which Democrats always have to clean up the mess.
This is a very interesting analysis, but I have my doubts about whether the sample is sufficient to support such strong conclusions. In particular, the trajectory of the deflator raises concerns: it does not appear to converge to any steady state. This could simply be the result of (a) model misspecification, or (b) the choice of the 1970s as the sample period.
The Fed isn't suppose to be under political pressure. There was a point to that🤷♂️
Very interesting